Yorkshire Chambers of Commerce warn on negative impacts from Budget on businesses
Key figures from the region’s Chambers of Commerce have warned that measures in this week’s Budget, including a lift in the minimum wage, could have a negative impact on businesses.
Chancellor Rachel Reeves announced that the minimum wage will increase to £12.72 an hour next April for eligible workers aged 21 and over.
Figures from West & North Yorkshire Chamber of Commerce and Barnsley & Rotherham Chamber of Commerce have warned that the changes, as well as a continuation of high tax on businesses, could create more complications for companies which are already struggling.
West & North Yorkshire Chamber of Commerce’s head of representation and policy, Mark Casci, said: “Given the hugely challenging tax increases introduced 12 months ago at the last Budget, businesses have been very anxious about what would be imposed this year.
“While no broad-based new taxes are to be imposed, very few have been reduced.
“Given taxation on business remains at a generational high and is continuing to make life highly challenging for business owners, it would have been an ideal opportunity for the Chancellor to have offered some relief. Increases in the minimum wage will pose yet more challenges for employers, particularly in the hospitality sector.”
Matt Travis, president of Barnsley & Rotherham Chamber, added: “This was not a simple Budget and the decisions made today will add more complexity to the already tangled tax system. With many of the announcements unlikely to come to fruition for some time, I suspect it will result in more speculation and uncertainty in the months and years to come.
“Many of the businesses I speak to are still reeling from National Insurance, employer pension contributions and changes to the national minimum wage introduced last year.
“Today offered a chance for the Chancellor to reset course, simplify the tax system and create an environment to enable businesses to prosper – instead the Chancellor did the opposite, creating more confusion and chaos whilst loosening the purse strings to appease her own backbenchers.”
Mr Travis added, however, that he “welcomed” the Chancellor’s decision to reduce the cost on SMEs for training apprentices. Ms Reeves announced that training for apprentices is to be free for under 25-year-olds at small and medium-sized companies.
The Chancellor said the announcement included £725 million for the Growth and Skills Levy to help support apprenticeships for young people.
Mr Travis said: “I welcome the decision to reduce the cost on SMEs when it comes to training apprentices. This will undoubtedly help some of Britain’s smallest businesses.”