Business owners have differing opinions on the Budget

Following the announcement of the Budget, local organisations and businesses across Northamptonshire have shared their reactions to the government's latest proposals. Chancellor Rachel Reeves unveiled a plan focused on both taxation and spending, with several measures set to affect families, workers, and businesses alike.

Key Budget Highlights

• The two-child benefit cap will be removed starting April 2026.
• The minimum wage will increase.
• Tax thresholds will remain frozen for a longer period, potentially increasing tax liabilities for many.

Hospitality Sector Responds

Miranda Richardson, landlady of The Squirrels pub in Duston, expressed disappointment over the lack of VAT reduction, saying, "VAT was huge in hospitality and a reduction for us was crucial and we got nothing." She also noted that wage increases would place additional strain on staff management.

Mark Gee, owner of the Crown Pub in Wellingborough, described the situation as "a bit of a disaster." He highlighted that rising minimum wages, increased beer prices, and no VAT relief would force him to reduce opening hours to manage costs.

Mark added, "The minimum wage sounds good for young and seasonal workers, but businesses like ours are struggling to afford it. We have to cut hours, which creates a spiral of challenges."

Impact on Families

Jane Calcott, trustee at Kettering Food Bank, welcomed the removal of the two-child benefit cap, noting it could significantly help larger families and ease demand on food banks. She explained, "Families with more than two children could see an average of 100 a week, which is a meaningful amount if spent wisely."

Support for Apprenticeships

Martin Mason, director of shoe company Tricker's, praised the introduction of free apprenticeships for under-25s, saying it could attract more people to vocational paths rather than solely to university. However, he criticized the limited support for British manufacturing and the absence of business rate relief for industrial companies.

Retirement and Personal Finances

Mike Carson, 59, from the automotive industry, shared concerns about retirement, feeling penalized by recent budgets. He explained that changes to salary sacrifice and National Insurance contributions would increase costs, forcing him to delay retirement plans. "It feels like constant deductions with little benefit for people like me," he said.

Small Business Challenges

Jenni Smith, owner of Duston Village Bakery, highlighted that rising minimum wages leave her with little choice but to raise prices. Managing a small team of 16, she described the increased workload and financial strain on small business owners.

The budget has triggered mixed reactions across Northamptonshire, reflecting a combination of optimism for families and young workers, but concerns about costs and sustainability for local businesses.

Author's Analysis: Northamptonshire Reacts to the Budget

The recent Budget has elicited a mixed response across Northamptonshire, highlighting a clear divide between benefits for families and challenges for businesses. The removal of the two-child benefit cap starting April 2026 has been welcomed by social support organisations, with potential weekly gains of around £100 for larger families. This could ease pressure on food banks and provide tangible financial relief.

However, local businesses, particularly in hospitality and small retail, are facing increased financial strain. The rise in the minimum wage, combined with frozen tax thresholds and no VAT relief, is forcing some employers to reduce hours or raise prices. Pub owners and small business operators report that wage increases, while beneficial for workers, create operational challenges that may impact sustainability.

Support for apprenticeships for under-25s is seen as a positive step toward vocational training, yet concerns remain over limited backing for British manufacturing and industrial companies. For older workers, changes to salary sacrifice and National Insurance contributions are contributing to retirement uncertainty, demonstrating that the Budget’s effects are uneven across different demographics.

In summary, Northamptonshire’s reaction underscores a tension between social support measures and the economic pressures on local businesses. Families may benefit in the short term, but sustaining business operations under the new financial landscape remains a pressing concern.

Sources:

• Business owners give mixed reaction to the Budget