Firms seek stability as chancellor delivers Budget

Rachel Reeves is to set out her Budget on Wednesday

Businesses in Yorkshire have warned they cannot cope with any more tax rises in the upcoming Budget, as data suggested an increasing number of firms face falling sales and declining profits.

The West & North Yorkshire Chamber of Commerce's latest Quarterly Economic Survey concluded "sky-high overheads" from taxation and labour costs were "putting a dampener" on revenue and profit expectations.

Ahead of the Budget later, Chancellor Rachel Reeves said she would make the "necessary choices" for the economy, to reduce the national debt, ease the cost of living and tackle NHS waiting lists.

But she confirmed both tax rises and spending cuts remained on the table.

Firms are still reeling from the £25bn National Insurance (NI) increase and an inflation-busting rise in the minimum wage which was introduced by the chancellor in last year's Budget.

• Everything you need to know about the Budget

According to government sources, Reeves has decided not to raise income tax rates, a move that had been widely expected.

However, speculation remains that the chancellor could extend a freeze on income tax and NI thresholds beyond the planned 2028-29 deadline.

'We need the government to give us security'

Aqila Choudhry launched her home care company Love in Care Ltd 10 years ago and says they can't cope with any more tax increases as they are already struggling

Love and Care Ltd is a medium-sized company which provides support workers for people in the community of all ages.

Aqila Choudhry launched the company 10 years ago when she said she struggled to find "culturally appropriate care" for her mother.

Since then her company has grown and she now employs about 60 people.

Ms Choudhry wants to expand her business but is struggling to recruit from the "homegrown population".

She cites a recent advert on a job website where out of 150 applicants only five were from the UK.

She says there needs to be a "long-term strategy announced for all sectors, as well as the healthcare sector, so that we can plan and commit and invest businesses in the region".

Above all, her clear plea to the chancellor is "no more tax increases because we are still recovering and struggling, and we need stability to allow us the growth".

She says: "Everyone has been crying out for growth, and we want it and need it, but we need to be enabled and have that confidence in the next term of this government to give us that security".

'We're resilient, we will get through this'

Scott Jenkins, president of York and North Yorkshire Chamber of Commerce, said he - and the chamber's members - want a Budget that comes without any more taxes on business

Scott Jenkins, a director at York car leasing firm Autohorn, backs Ms Choudry's call for no more tax increases for businesses.

He says the last 12 months - after the increase in employer National Insurance contributions - have been "really tough".

The long speculation about what might – or might not – be in the Budget has made businesses cautious about investing, he says, meaning some projects have been put on hold.

Mr Jenkins says: "While we are trading quite well, there are lots of supply chain issues and customers can be hard to find.

"There is a feeling of nervousness in our market right now.

"It's tough going but we are doing OK.

"Businesses in North Yorkshire are resilient, we will get through this."

Chamber members want to see the chancellor announce investment in infrastructure projects across the North, Mr Jenkins says.

He adds: "It's a killer for business at the minute.

"We really need to be able to move things around in a better way than we do right now."

The chancellor will deliver her Budget in the House of Commons later.

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