Small business owners in Exeter are feeling anxious about possible changes coming with the Budget on 30th October. They’re worried about several things, like changes in business rate relief, increases in the minimum wage, and higher National Insurance costs for employers. These changes, they fear, could hurt their businesses.

Concerns from Local Business Owners

Nicola Wheeler, the chief executive of InExeter, a business improvement district, said the local economy is doing well, but small business owners are still concerned. She mentioned that Exeter is thriving, with more people coming from nearby towns and even farther away. But despite this success, many business owners fear that higher costs could harm their ability to keep things running smoothly.

Nicola said, “Businesses are dealing with a tough economic situation right now. If National Insurance contributions for employers go up, along with an increase in the national minimum wage, it could be hard for businesses to survive.” She explained that all these changes at the same time could be overwhelming for small businesses.

Restaurant and Bar Owners Speak Out

Lloyd Gardner, who owns a bar called Lloyd’s Lounge and a restaurant named Sabatini in Exeter, employs 34 people. He said that he really hopes business rate relief will be extended. Right now, hospitality businesses can apply for up to 75% off their business rates, which helps them stay afloat.

Lloyd said, “If they take away this business rates relief, it would put a huge financial strain on my businesses. With the relief, I can focus on keeping my staff employed and stay financially stable.”

Retailers Worried About Rising Costs

Justine Hyde, who owns a gift shop called Hyde and Seek, recently added a small café to her store. She’s worried about rising costs too. She explained that if wages for employees go up, along with National Insurance contributions and VAT changes, it could be hard for her to manage.

“It’s been tough enough over the last few years,” Justine said. “I don’t mind paying my employees more, but if there are other costs like VAT and National Insurance increases, it will be too much to handle.”

Health Store Owner Hopes for Government Support

Mithat Ishakoglu runs a health food store and café called Ari’s Healthy Life on Sidwell Street in Exeter. He believes the government should do more to protect small businesses. He feels that small businesses shouldn’t be the ones paying the price for increasing employee rights and wages.

“I think small business owners and everyday workers are in the same boat. Both need to be protected,” Mithat said. He also believes that while the national minimum wage should increase, small businesses should not have to bear the full burden of the extra costs.

Computer Shop Owner Speaks About VAT Struggles

Phil Bowler, who owns Titan Computers, has been in business for around 30 years. He spends four days a week working at his shop but doesn’t take a salary from it. Instead, he lives off his pension and investments. Phil thinks the government treats small businesses unfairly, like they’re “cash cows” that are expected to contribute more without receiving much help in return.

“The government could raise the minimum wage to £23,000 a year, but a small business would need to bring in an extra £50,000 to cover that,” Phil said. His biggest concern is VAT (Value Added Tax). Businesses that make over £90,000 a year have to register for VAT and pay 20% of their earnings to the government.

“When 20% of what you earn has to go to the government, that’s a huge amount,” Phil said. “VAT is killing businesses on every high street.”

Government Plans and Uncertainty

The Chancellor, Rachel Reeves, has acknowledged that she’s facing “difficult decisions.” The BBC reports that the upcoming Budget is expected to include tax increases and spending cuts worth £40 billion. This uncertainty is causing a lot of stress for small business owners who are unsure how these changes will affect them.

A spokesperson for HM Treasury said they wouldn’t comment on specific future tax policies before the Budget is announced. However, the government has made promises to support businesses, including those on high streets, by capping corporation tax at 25%, making the business rates system fairer, and providing a business tax roadmap to help with future planning.

What’s Next for Small Businesses?

While the government has made some pledges to support small businesses, many owners remain worried about what’s to come. Business owners like Nicola, Lloyd, Justine, Mithat, and Phil hope that the government will recognize the importance of small businesses to the local economy and take steps to ensure their survival.

For now, the future is uncertain, and these business owners are bracing themselves for possible changes. They know that whatever happens in the Budget, it will have a big impact on how they run their businesses.

Final Thoughts

As the Budget date gets closer, small business owners in Exeter and across the country are waiting nervously to see what the government will do. They know that changes to business rates, wage laws, and National Insurance contributions could either help or hurt them.

Small businesses are the backbone of local economies, providing jobs and services to their communities. But with so many potential changes on the horizon, these businesses are left wondering how they will survive if costs rise across the board. Will the government step in to help, or will small businesses be left to shoulder the burden? Only time will tell.