Businesses 'worried about everything' ahead of Budget

Nigel Lyons, owner of The Coffee Grind, said he was braced for tough times

Business owners across north-west England have told of their concerns about the impact a raft of expected tax rises and spending cuts could have on the region's economy.

Labour's first Budget for 14 years will be delivered by Chancellor Rachel Reeves on Wednesday and she has warned it will involve "difficult decisions".

Liverpool events company owner Lisa Richards said many companies were still recovering from the pandemic and tax hikes could tip some firms over the edge.

Prime Minister Sir Keir Starmer said tax rises were needed "to prevent austerity and rebuild public services".

Ms Richards, company director at MSP Global, said the business had experienced a "really slow build" since the pandemic and any tax rises "will hit small businesses hard".

"If we are going to be taxed heavily it is only going to shut small businesses down if they can't manage their finances," she said.

Lisa Richards said tax increases could see some small businesses forced to close

Andrew Dwerryhouse, managing director at Liverpool-based clothing and merchandise company Wild Thang, said businesses had faced the challenges of rising costs and inflation in recent years and now "want stability".

"Stability means we can plan for the future," he said.

"Plan for the long term rather than reacting to the short term."

He continued: "When you've got high bills and rising costs all the time it's very hard to plan investments for the future. While we've committed significantly it has been really challenging to make the numbers add up."

"I really want it to be that fresh start and you've got to be excited about the future but you've got to trust the government to deliver that."

Business owners are concerned about a downturn in the local economy

Small businesses in Greater Manchester expressed the same concerns.

Nigel Lyons, owner of The Coffee Grind coffee shop in Bolton, said: "The problem we've got as a small business is what we have to pay for.

"National Insurance, corporation tax, rents and VAT and everything else."

He said small businesses could end up cutting jobs as a way to survive.

"They'll end up getting rid of staff just to cover the tax bill and then the owners have to work a lot harder to cover what the governments are taking off them," he said.

Andrew Dwerryhouse said businesses "want stability"

At nearby Pillings fish and chip shop, owner Peter McGowan echoed Mr Lyons' worries.

"Everybody's worried about everything," he said.

"Is it going to be fuel? Is it going to be gas and electric going up? What are they going to do? We don't know do we."

One of the controversial tax hikes the chancellor is expected to announce is an increase to the National Insurance rate that employers pay.

Peter McGowan said "everybody is worried about everything"

Reeves is also expected to lower the threshold for when employers start paying the tax.

Paul Cherpeau, chief executive of Liverpool and Sefton Chamber of Commerce, said the "most important thing businesses need to hear is a message of confidence of stability and of investment".

He added: "What we need now is the government to really articulate why businesses should invest, the positive outlook for the economy and what measures are going to be in place to create that environment where businesses can thrive."