Small businesses are the backbone of South West Devon’s economy, but they’ve been hit hard by the Chancellor’s October Budget. With increased operational costs, many of the 3,000 businesses in our region face an uncertain future.
The Budget introduced a series of financial challenges that threaten not only businesses but also the communities they support. Among the most concerning changes:
- Employers’ National Insurance Contributions (NIC) hike: Now at 15% for salaries exceeding £5,000, this increase places significant strain on employers trying to keep their staff and operations afloat.
- National Living Wage increase: While supporting fair wages is vital, the 6.7% rise adds pressure to businesses already stretched thin.
- Energy price cap increase: A 10% hike in energy costs will affect everything from shop floors to farms, making it harder for businesses to stay competitive.
These changes don’t just impact the high street. GP surgeries, primary care providers, charities, and farms are also facing significant tax rises. Rebecca warns that these measures will weaken our communities, reduce vital services, limit growth, and cut jobs, ultimately shrinking the local tax base.
To address these at a local level, Rebecca has launched a survey inviting businesses across South West Devon to share their concerns and insights in detail. The feedback will inform her work in Westminster, ensuring that she advocates for policies that reflect the realities faced by local businesses in the constituency.
Rebecca has also called on the government to take immediate action to ease the burden on small businesses, including
- Asking the Secretary of State for Culture, Media and Sport measures had been put in place to ensure that vital services provided by Young Devon and others are not squeezed by the Government's plans to tax charities
- Joining over 40 MP’s asking the Government to reverse the Employer NIC hike on key services
