This week signals the start of the new tax year, and it is a week businesses up and down the country have been dreading. That’s because policies announced by Chancellor Reeves – the most anti-business Chancellor in recent times - come into effect.
Every staff member will now cost more due to the rise in employer national insurance contributions and the lowering of the threshold at which employers pay it from £9,100 to £5,000. Minimum wage is also increasing. Many local businesses I’ve met with say these measures will have a devastating impact on both youth employment and part time employment.
Gas, electricity and water bills will also soar (as is the case for everyone), adding more to the cost of living and doing business.
If that was not enough, business rate relief introduced by Rishi Sunak during the pandemic as a lifeline, is being cut from 75 per cent to 40 per cent, doubling the cost for many businesses.
It’s hardly surprising the month has been dubbed Awful April.
One Knutsford business I recently spoke with said their rate demand had risen from £4,000 last year to more than £10,000 for this financial year. These are independent businesses on our high streets - where is that money expected to come from? Along with increases in rent and service charges, this business owner made it clear, many small independent businesses won’t be able cope.
Labour nationally has no idea about business. Our local Labour-led councils aren’t helping the situation either by restricting free parking, in turn reducing footfall. Everything about Labour is anti-business.
We need thriving businesses to create jobs and opportunities for all. The revenue from businesses pays for our public services, to the benefit of all. It beggar’s belief Labour has no understanding of this.
Businesses face tough choices. For many the burden will be too much and they will be forced to close. Some may have to look at staffing levels or pay, others may have no option but pass on higher costs to the consumer - which I know from talking to my local businesses, they do not want to do.
It’s been five months since Rachel Reeves delivered her disastrous Budget. You would have thought she may have reflected and heeded warnings from businesses and business leaders. But no, she is determined to push ahead with little regard or perhaps understanding, of how jobs, revenue to the Exchequer, and livelihoods will be lost.