'Budget is encouraging but there's uncertainty'

Sophia Gaiqui is the co-owner of a gym near Derby which fully opened last month

A new business owner has welcomed a number of announcements made during Wednesday's Budget, but has raised concerns on business rate uncertainty.

Sophia Gaiqui, 35, who runs Immerse Gyms in Little Eaton, near Derby, said she hoped for more from Chancellor Rachel Reeves on investment in mental and physical health.

But the mother-of-two, who also helps out in schools, welcomed the chancellor's announcement on tripling funding for breakfast clubs in schools.

Ms Gaiqui said: "There’s been a lot of strain on people over the last few years - it is tough."

Chancellor Rachel Reeves said the Budget would raise taxes by £40bn and announced an increase in National Insurance contributions for employers from April

The Chancellor has committed to increasing employers' National Insurance contributions from 13.8% to 15%. The threshold at which they have to pay it will drop from £9,100 to £5,000 - raising £25bn.

But there's some relief for employers in that employment allowance - which allows companies to reduce their NI liability - will increase from £5,000 to £10,500.

Despite predictions Reeves might continue the freeze in income tax thresholds beyond 2028-29, she said that after that they would go up in line with inflation.

Reacting to the Budget minutes after it finished, Ms Gaiqui said: “It’s good we’re putting more public funding into a range of things – there’s been a lot of strain on people over the last few years especially since Covid. People are having to work longer, children are out of the house longer.

Ms Gaiqui is one of three that runs the gym which also includes Terry Mohr

“I do think there is still a lot of improvement in terms of mental health and physical health is concerned – there’s long waiting lists and these need to come down fast. There needs to be more funding in preventative measures."

The personal trainer, who is also a weightlifting coach said they'll keep a "close eye" on the business rates announcement. The Chancellor said the 75% discount to business rates - due to expire in 2025 - will be replaced with a 40% discount.

“As a small business, we’re family run, we’re local people putting blood sweat and tears into it. It’s tight, it’s hard we have to put a lot in to earn a salary from it but this is our passion," she said.

“There’s some encouraging things in the Budget but things could or will change again in a few years which means there’s a bit of uncertainty."

The Chancellor said she would triple the the budget for breakfast clubs to £30m

Ms Gaiqui said she helps out in schools in the Derby area as a cover teacher and added she has seen first hand the “pressures on the education system”, especially with pupils with special educational needs and disabilities (SEND).

She also welcomed the Chancellor’s commitment to tripling the funding for breakfast clubs.

“It’s great more funding is going into schools, over the years it’s been very hard especially for teachers,” she said.

“My son was deaf until he was eight so I’ve seen at first hand just how hard they work with the budgets that they have and it seems impossible."

Terry Mohr said small businesses would be affected more by increases in wages and employer contributions in National Insurance

Co-owner Terry Mohr said the increase to £10 an hour for 18-20 year-olds could "backfire" on young people and suggested businesses could choose a more "experienced" worker instead for a £2.20 extra an hour.

"Young people need to go out and work and learn valuable life skills - if small businesses can't afford to employ them, it's bad all round."

On National Insurance, Mr Mohr added: "We're not big employers per say but the increase in contributions from employers is a constraint on some to employ more people.

"It's a big worry for me you're effectively taxing people but businesses can recoup that later down the line - that could cause a reduction in employment."