We need positivity in the Budget, says retail chair

Peter Hodges and Roy Hagan work for Myhills Pet and Garden, which has six stores across Norfolk

A retail chairman said he hoped to see "positivity" in the Chancellor Rachel Reeves' Budget on 26 November.

Peter Hodges, the chairman of Myhills Pet and Garden, said many retailers were hit by last year's budget, which saw an increase in employer's National Insurance contributions and a change to relief on business rates.

The chain has six shops in Norfolk and employs 55 people in its stores in towns including Diss, Watton and Dereham.

"We do need to see some positivity towards helping smaller businesses," said Mr Hodges

Peter Hodges hoped the budget will set out measures to help smaller businesses

The business was established in Wymondham in 1937 and Mr Hodges said he started working at the company as a Saturday boy more than 50 years ago.

He said he was worried a drop in consumer confidence has put people off enjoying some "retail therapy".

"People are constantly under threat of what's going to happen in the budget and society needs to have some vibrancy put into it," he said.

"People need to be helped to be more positive," he added.

Roy Hagan said the business had survived previous downturns in trade

"Things on the High Street, especially in the market towns, [are] difficult," said Roy Hagan, who has worked at the company for 40 years.

Like his chairman, Mr Hagan started with a weekend job at the company, before working his way up to his current role as managing director.

"We came through Covid, things had sort of started to stabilise, but then this last 18 months consumer confidence just seems to have disappeared," he said.

Mr Hagan said the change to employer's National Insurance contributions in last year's budget added "well over a £100,000" to the firm's outgoings.

He added a cut in the reduction on business rates - the tax a company pays on its buildings - also cost the business about £30,000.

"Maintaining turnover on the high street is exceedingly difficult," Mr Hagan said.

"A lot of businesses aren't even getting anywhere near what they did the previous year and you're having to find all those extra overheads out of the same - or lower -turnover."

The company opened its first shop in Wymondham 88 years ago

When asked about the budget, Mr Hodges said the government "haven't got much room to manoeuvre" and he hoped smaller retailers would get more support to compete against online companies.

"I would like to see if they could make some positivity in people's lives and give people more back in their pockets," he added.

Mr Hagan said he wanted to know if business rate reform would help the high street, something Labour promised in its election manifesto last year.

The government published an interim report on business rate reforms in September and said there would be a further update in the budget.

"Hopefully the budget might make things a little bit clearer," Mr Hagan said.

A spokesperson for the Treasury said the government was "pro-business" and it was "reforming business rates".

They added: "The tax decisions we took at the budget last year mean that we have been able to deliver on the priorities of the British people, from investing in the NHS to cutting waiting lists and putting more money in their pockets with a wage boost for millions."