Small business owners concerned over Budget

Nicola Wheeler, of Exeter's business improvement district, InExeter, says small businesses are concerned about several changes being made at the same time

Small business owners say they are concerned about how they could be affected by possible changes in the Budget on 30 October.

Traders in Exeter said they were worried about the possibility of changes to business rate relief, minimum wage increases and increased National Insurance contributions for employers.

The boss of InExeter, the local business improvement district (BID), said the city was going from strength to strength but business owners feared being hit by increased costs.

The Treasury said it was reforming the business rates system and would not comment on speculation ahead of the Budget.

'Impact negatively'

Nicola Wheeler, chief executive of InExeter, said she had commissioned research that showed Exeter was "retaining its regional dominance" and "bringing people in from further and further afield".

But she said there were "really challenging circumstances economically".

She said: "For businesses locally, the key things will be employers' National Insurance contributions going up, any increase in the national minimum wage, employees' rights as well.

"All those things happening at the same time could really impact negatively on businesses."

Lloyd Gardner owns the bar and restaurant Lloyd's Lounge and the Sabatini restaurant in the city

Bar and restaurant owner Lloyd Gardner employs 34 staff at his businesses Lloyd's Lounge and Sabatini.

He said he wanted to see business rates reductions being extended.

Hospitality businesses can currently apply for rates relief of up to 75%.

Mr Gardner said: "It frees up capital to focus and carry on employing my staff and being financially secure."

Mr Gardner said a removal of business rates relief "would put a massive financial strain" on both of his businesses.

Justine Hyde has recently opened a cafe as part of her gift shop, Hyde and Seek, in Exeter

Justine Hyde has recently opened a cafe as part of her gift shop, Hyde and Seek.

She said she was "pretty worried" about any increase in wages for her employees, changes to National Insurance contributions or changes to VAT.

She said: "It's been hard enough over the last couple of years, looking at these extra expenses.

"I didn't mind paying more in terms of wages, but not if they're also now going to add on more other costs."

Mithat Ishakoglu has a health food store and cafe on Sidwell Street

Mithat Ishakoglu, owner of Ari's Healthy Life shop and cafe on Sidwell Street, said he wanted to see the government taking more action to protect small businesses.

He said small business owners should not "be a victim" of increased rights for employees.

Mr Ishakoglu said: "I see small business owners and the everyday workers in the same boat. Both should be protected at the same time."

He said the government needed to find a way of increasing the national minimum wage "but the price should not be paid by small businesses".

Phil Bowler has been the owner of Titan Computers for about 30 years

Phil Bowler spends four days a week at his shop, Titan Computers, but said he did not take any income from the business - instead living off his pension and other investments.

He said the government treated small businesses "like a cash cow" without offering "a great deal of help".

He said: "They can put the minimum wage up to £23,000 a year but a small business would have to turnover an extra £50,000 a year to pay that employee."

Mr Bowler said the biggest issue for him was VAT. Businesses with a turnover of more than £90,000 a year have to register for VAT payments at a rate of 20%.

He said: "When 20% of your takings has to go to the government - that is a massive amount of money and the VAT alone is killing businesses in every high street."

'Future confidence'

Chancellor Rachel Reeves has said she is facing "difficult decisions" and the BBC understands the Budget will include tax rises and spending cuts to the value of £40bn.

HM Treasury said it would not comment on speculation around future tax policies.

A government spokesperson said: "We’re supporting businesses, including those on the high street, through pledges to cap corporation tax at 25%, make the business rates system fairer, and to publish a business tax roadmap so that future investments can be planned with confidence."