The government has been accused of ignoring small businesses in the Autumn Budget after the Chancellor announced the National Living Wage for the over-25s will increase to £7.83 per hour.
Chancellor Philip Hammond revealed the changes to the current £7.50 hourly rate at the House of Commons on 22 November. The increase will see those working 38-hour weeks earn at least £600 more a year.
Mital Morar, of Ancoats General Store in Manchester, worried about the effect the increase will have on the running of his shop, told RN: “It’s a case of the government ignoring small businesses again. They forget how tough it is for us to run a business. We’re already feeling the squeeze from business rates. Not only am I worried about us having to reduce the pricing on our stock, but I may also have reduce my staffing levels.”
Raaj Chandarana, of Londis Tara’s News in High Wycombe, said: “I’m annoyed about this. Retailers are already struggling to keep their heads above water, and maintaining decent profit margins is already untenable as it is.”
Mr Hammond also announced the government’s decision, taken last year, to base future business rates on CPI rather than RPI will be brought forward by two years from April 2018. The measure has been designed to provide more accurate rates bills for retailers, aiming to help businesses save a combined £2.3bn.
Mr Hammond said: “We will help our army of 5.5 million small businesses by bringing forward the planned business rates switch from RPI to CPI to April 2018, worth £2.3bn to businesses over the next five years.”
Other announcements made by Mr Hammond in the Autumn Budget included a freeze on wine, spirits and beer duty. Tobacco duty will increase by 2%, and rolling tobacco by a further 1%, in line with inflation from next year.
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