Small Business Owners Voice Concerns Over Labour Policies Ahead of Budget
Owners in Chancellor John Healey's constituency express worries about recruitment and business growth due to rising costs and proposed worker regulations.
Small business owners in Chancellor John Healey's Yorkshire constituency are expressing apprehension about the upcoming Budget, citing concerns that current Labour policies are hindering recruitment and stifling business aspiration.
Tony Airey, who has operated Wentworth Garden Centre with his family for four decades, stated that increased National Insurance contributions and the national minimum wage forced them to cut staff last Christmas instead of hiring additional workers. He believes further minimum wage hikes would be unsustainable. Airey also pointed to Angela Rayner's proposed Workers' Rights Bill, which would grant the right to sick pay from the first day of illness regardless of hours worked, as a disincentive for employers to take on new staff, particularly young people.
Airey conveyed these sentiments in a letter to Healey following the last Budget, writing, "The Chancellor left the small business sector at a loss in terms of how the Budget provided any stimulus for growth in our sector (quite the reverse). This administration is killing aspiration and deterring people from doing and achieving what we have done. We have placed a block on recruitment and investment." He argued that increased taxes reduce overall revenue and that Labour offers no incentive for individuals to undertake the personal and financial risks associated with starting a business.
The Barnsley and Rotherham Chamber, which represents businesses in the area, has urged for immediate and direct action on National Insurance for individuals under 25 to address youth unemployment. Chief executive Carrie Sudbury also called for targeted tax reductions to alleviate pressures from energy costs and business rates, stating that such measures would provide firms with the necessary 'headroom to hire, innovate and compete.'
Despite these concerns, the Chamber noted a positive shift in sentiment among its members regarding the current administration. They reported that the partnership between Chancellor Healey and Prime Minister Andy Burnham has begun to stabilize the region's business community, fostering a sense of optimism compared to previous periods. A recent survey indicated that 57% of businesses anticipate an increase in turnover within the next year, and 51% expect improved profitability, marking a rise from the previous quarter. "Employers are ready to consider investment, expand and drive growth, but they need decisive action from Government to sustain that trajectory," Sudbury added.
Further down the road in Rawmarsh, brewery owner Mick Warburton expressed cautious optimism. He believes that Healey and Burnham are showing signs of wanting to support the hospitality sector and hopes for additional assistance for small businesses and potential action on beer duty. Warburton recalled that John Healey was instrumental in introducing small brewers' relief during a previous Labour government, which provided a 50% discount on beer duty, enabling his brewery to start. Healey had also recently praised Chantry Brewery, Warburton's business, for its role in promoting the government's 20% cut to business rates for pubs, clubs, and music venues. However, Warburton acknowledged that pubs still face challenges due to customers having less disposable income.
In a broader economic context, consumer spending appears to be shifting towards home comforts and less expensive entertainment. Retailers have noted increased demand for home improvement products and premium own-brand supermarket meals as households focus on 'hunkering down' amidst rising living costs. Businesses like Sofa.com have seen success with stain-resistant fabrics, catering to a trend of redecorating rather than moving due to high stamp duty costs.