Businesses still struggling to recover from the pandemic will be faced with ‘hugely escalating cost pressures’ following the Budget, the Shropshire Chamber of commerce has said.
Chancellor Rachel Reeves outlined a plan to raise more than £40 billion in new taxes – with the business community being asked to shoulder around two thirds of the burden.
“There is no doubt that the rise in National Insurance for employers, on the back of the announcement of an above inflation increase in the National Minimum Wage, will put a big dent in profitability and be a big worry to many employers.“The likelihood is that some of these additional costs are now going to be passed onto customers, which could in turn put pressure on inflation.”
“I’m concerned that raising the rate and lowering the threshold for employers’ National Insurance ill particularly hit Shropshire companies which are employing lower paid workers. Ruth welcomed some of the announcements in the speech, including a decision to freeze fuel duty – particularly important for rural areas – a tax cut on draught beers to help the pub trade, and business rate relief for the retail, hospitality and leisure industry.
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