YBC Budget Reaction
Following today’s budget this is our press release and immediate reaction.
The Chancellor’s road map to long term economic growth is focused only on the destination and not the journey.
In the lead up to today’s Budget, Kier Starmer stressed that politics is about choices and that this government are committed to “laying a foundation for a growing economy that is creating wealth and opportunity for all.” What we have seen so far from this government, and compounded by today’s announcements, is that using and enabling small and medium sized businesses to create economic growth and job creation, is not a priority for this government.
Rachel Reeves opened today’s budget by announcing that she is raising taxes by a record £40bn, in the name of restoring economic stability and rebuilding public services.
Already in this parliament we have seen financial handouts in the form of pay rises for junior doctors and train drivers, and then today an announced increase in defence, NHS and schools spending. At the same time small businesses are today being asked to increase national insurance contributions they must pay on staff wages by 1.2%, as well as the extra 6.7% increase in wages they must pay due to the rise in the national living wage. This is on top of the projected additional cost for employers due to the already announced Workers Rights Bill.
If, as Kier Starmer said “politics is about choices”, then The Chancellor has today confirmed this government’s choice. To give to those in the public sector and those who are unemployed or on the lowest wages, at the expense of those small business owners who are trying grow the economy and employ (the much debated) “working people” of this country. It is political ideology over pragmatism.
Ted Wigzell, CEO of Your Business Community, said: “Our overarching desire for any government is that they foster an environment where it is easy for individuals to start a business and grow a business. The more successful businesses there are, the more people there are in employment, and the more money there is to go into the exchequer.
“Today’s announcements make it harder for small businesses to employ people and harder for small businesses to grow. We of course welcome the increase in the Employment Allowance for small businesses from £5000 to £10,000, the 40% relief on business rates for those in the retail, hospitality and leisure sector, and the continued freezing of fuel duty. But none of this goes far enough.
“The overarching narrative of this Budget and this government is that whilst they talk about desiring a strong economy of growth and wealth creation, they are simply untrusting or unwilling to give hard working small business owners the opportunity to play their part in getting the country to that place.”