Chancellor John Healey announced a 3.9% rise in the minimum wage during his Budget speech, an initiative aimed at alleviating the cost-of-living crisis. However, Tristan Bennett, who runs Bennetts Farms, a dairy farm that also includes a glamping site and cafe, described the measure as a "massive blow," particularly for the hospitality sector.
Bennett expressed disappointment with the Budget, calling it "a lot of tinkering and gimmicks" with no substantial relief for businesses like his. He noted that the minimum wage increase would heavily affect his cafe operations and impact his ability to hire apprentices on the farm, making it difficult to sustain his workforce.
"We are trying to take on apprentices on the farm but we're finding it so hard now to make it pay," Bennett told BBC Hereford and Worcester. He added that while an increase in the small business rate relief threshold from £12,000 to £18,000 would offer some minor assistance to the glamping business, the lack of VAT reduction for hospitality venues was a missed opportunity.
"They did it for the pubs," Bennett said, referring to past government measures. "We were hoping they would have been able to help the rest of the hospitality industry but sadly not."
He characterized the Budget as "tinkering around the edges" and expressed despondency regarding the political class's perceived failure to address pressing economic issues, especially given the government's majority.
Rachel Buchanan, co-owner of Elderwood Books in Brampton Bryan, Herefordshire, shared her concerns about business rates. She is currently challenging her premises' valuation, which stands at over £18,000. If successful, her business would fall below this threshold, providing a significant relief.
"We're in an area subject to flooding. Tourists come or don't come, so if we have a quiet week in the winter, those business rates still have to be paid," Buchanan explained. "Having a much lower, or preferably zero, bill would make a massive difference."
While acknowledging a reduction in VAT would be beneficial, Buchanan did not expect it and stated that businesses like hers are left to rely on their own efforts to ensure customer flow and cover expenses.