In its manifesto, Labour promised to “kickstart economic growth” by being pro-business.
Yet small business owners were left dismayed by Rachel Reeves’s first Budget. The Chancellor last week announced the National Insurance rate that employers pay will increase from 13.8pc to 15pc, in a blow to businesses.
She also reduced the threshold at which employers pay the levy on employee salaries from £9,100 to £5,000. Ms Reeves claimed it would raise £25bn for the Treasury but this has been disputed by the Institute for Fiscal Studies.
Small business owners such as Sean Hughes, 43, have told The Telegraph that the Budget will be “crippling” for the industry.
Mr Hughes owns two pubs in St Albans and said the rises to minimum wage and National Insurance would have a detrimental impact on business. “It will probably cost us £25,000 to £30,000 just for one pub alone. That’s coming out of our profit and means the price of the pint is going to get higher and higher,” he said.
He added the industry has been “so saturated” by taxation, the energy crisis and soaring costs, that they will “have to pass every single increase on”.
Mr Hughes added that the 1p on the £1 relief to draught duty would not have a sizeable effect on his business: “I find it laughable that they think that’s actually helping the country.”