Graham Stuart, Member of Parliament for Beverley and Holderness, has heard of the devastating impact the Chancellor’s Budget will have on businesses in our area.
In her budget, the Chancellor of the Exchequer, Rachel Reeves MP, announced that the National Minimum Wage would rise by 6.7% to £12.21. She also announced her plans for a Jobs Tax, with Employer National Insurance Contributions (NICs) increasing by 1.2% and the threshold at which a business starts to pay NICs falling from £9100 to £5000; costing them £917 for each worker they employ on the average wage.
During his meeting with delegates from the Beverley and District Chamber of Trade, Graham heard how these measures will harm local businesses. Karl Douglas, Chair of Beverley Chamber of Trade, told Graham that 94% of his members have said the increase in the National Minimum Wage and the Government’s Jobs Tax will negatively impact their business. As a result, 89% of those surveyed feel less confident about the year ahead than they did before the Budget.
Graham was particularly concerned to learn that 92% said that the Budget will impact their employees in the long term, with the greatest burden falling on young apprentices who will have fewer opportunities to train on the job due to the exorbitant cost the Chancellor is placing on businesses who want to support them as they leave school.
The pessimistic outlook of our small business owners is something Graham has heard multiple times in the last few weeks; both from the shop owners in Beverley he spoke to on Small Business Saturday and the entrepreneurs scattered from Flinton to Withernsea who fear that they will need to hire fewer people due to the Government’s ill-thought-out policies.
That’s why Graham has been a passionate voice for businesses at every opportunity in Parliament. He has explained to the Chancellor both in a letter and in the Chamber that it won’t be those with the broadest shoulders who will bear the burden of these decisions, but the fantastic businesses we are fortunate to have on our High Street. Graham will continue to champion businesses both locally and in Parliament, to persuade the Government to start listening to their needs.
Karl Douglas, Chair of Beverley and District Chamber of Trade, commented: “Our members are worried about the devastating impact this Budget will have on them. They will need to hire fewer people, support fewer apprentices and reduce their investment to pay this Jobs Tax. We greatly appreciate Graham taking the time to listen to our concerns and for being a passionate supporter of local businesses in Parliament. The Chamber will continue to work with Graham to encourage the Chancellor to listen and help the businesses who do so much in our communities to thrive.”
Graham Stuart said: “Small businesses across Beverley and Holderness are the backbone of our economy. But the message from businesses in Beverley is clear: this Budget will damage them and the hard-working people they employ. I wish there was more I could do to support them. However I will continue to be their voice in Parliament and remind the Chancellor that it is our entrepreneurs who create our nation’s wealth, not the Government.”
