'Small firms are treading water, we need support'

Gary Hodgson, director of Venture Seafoods in Bridlington, believes the government needs to show more support for local businesses

Business owners are calling on Chancellor Rachel Reeves to provide them with more support in the Budget and remove what they claim are obstacles to growth.

Seafood supplier Venture Seafoods, in Bridlington, East Yorkshire, said rising energy costs are putting too much pressure on traders and households, who "cannot afford to pay any more".

Director Gary Hodgson said: "Most small businesses now are treading water, they haven't got any fiscal headroom."

The government has been approached for comment.

The company was started by brothers Gary and John Hodgson in 2002.

Their shellfish, which is caught off the coast of Holderness, is consumed in the UK and exported to Europe and Asia.

Gary said: "We're supporting all the fishermen who are based on the coast [of Holderness], but also all of our employees live locally, our suppliers are local and we're trying to add value to the product as well as the economy."

However, he said energy costs and all overheads have increased.

He added: "Last month, our gas, water and electricity charges were over £33,000.

"Of that, £22,500 was electricity charges, and of that £1,100 was a climate change levy. This is a tax against businesses to encourage us to use less energy.

"But we don't need a levy, we've already got an electricity bill which is £22,500, so there's our encouragement to reduce our energy consumption as much as we can. We're not wasting energy, we can't afford the energy.

"That's just three overheads, on top of National Insurance increases, minimum wage increases, transport increases. All of our costs have increased, there's not a single cost on the balance sheet that hasn't increased."

When asked about how he feels ahead of the Budget, which will be delivered by Reeves on Wednesday, Mr Hodgson said: "I'm a little bit concerned because, my personal feeling is, at the moment this government doesn't have a grip on public finances."

Red Carpet Ready owner Kirsty Gale says there is not enough encouragement for new and existing businesses

Dress specialists Red Carpet Ready, in Lincoln, started 13 years ago and now turns over £2m a year supplying clothing for red carpet and special events.

Owner Kirsty Gale believes current rates mean there is no incentive to want to grow a business, or encourage anyone to take the plunge and start up a new one.

She said: "The government needs to seriously consider the National Insurance. In April it went up from 13.8% to 15%. That is not encouraging me to take on full-time staff.

"Rates, for new or existing businesses, are absolutely extortionate. We want to grow and move our premises into a much bigger one-stop shop, but those rates are currently too risky to take, even for a successful business like us.

"The government is not encouraging anyone who is about to start a new business to give them the confidence and push to go ahead and do it.

"Starting any business is a risk and a challenge, but I cannot see any support out there that is giving anyone the ambition to go and take those sorts of risks."

Labour MP for Lincoln Hamish Falconer said: "I want to see Kirsty's business succeed. I want the Budget to be helping businesses in Lincoln.

"That is what I know the chancellor is focussed on. The question for me is being able to support businesses of all sizes, both the really small ones that tend to dominate Lincoln but also the big growing ones, like Kirsty's."

Their concerns come as the Hull and Humber Chamber of Commerce published its latest Quarterly Economic Survey for 2025.

The survey, among business members across the Humber region, revealed "continuing uncertainty, falling turnover and rising prices".

David Hooper, Hull and Humber Chamber of Commerce, says the government needs to support small businesses, not "drive them into the ground"

David Hooper, external affairs director at the Chamber, said "A lot of these businesses, following the National Insurance and minimum wage increases, are finding things increasingly difficult.

"I think, with another Budget on the horizon, there's an awful lot of trepidation and concern."

In her October 2024 Budget, Reeves announced that businesses would face higher costs in terms of National Insurance contributions and the minimum wage.

Mr Hooper added: "I think it's a fairly clear message from us [this time round]. Don't put extra cost on business. They can't afford it, they don't need it. They need the Government to support them and encourage them to invest and drive the economy, not slow it down."

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