Norfolk Small Businesses Express Apprehension Ahead of Budget

Business proprietors in Norfolk indicated their intention to monitor the forthcoming Budget attentively, citing worries about potential revisions to National Insurance regulations, corporation tax, and business rates. The Federation of Small Businesses (FSB) reported that business leaders were “understandably nervous”. Candy Richards, the FSB’s East Anglia development manager, stated, “Some of the potential measures, such as an increase in employers National Insurance contributions, will disproportionately impact small businesses who are already struggling with high costs and low consumer confidence.” Chancellor Rachel Reeves is scheduled to present the Budget, marking Labour’s inaugural budget in more than 14 years. Chris Gibbons, who had not envisioned himself as a business operator, has served as co-owner of Morello Services, a flat roofing company, for nearly three years. Situated on the periphery of Norwich, the company has experienced success, obtaining contracts with entities such as the University of East Anglia and RAF Marham. He elaborated, “It’s definitely been an eye-opener.” He added, “Just the pressure of the job, running a business, from making sure you’ve got work, securing the work – it’s a very competitive market. You can’t switch off.” Mr. Gibbons expressed apprehension regarding the probable rise in National Insurance contributions required from employers. Despite his workforce expanding from six to twelve individuals, he indicated that an increase might prompt his company to seek cost savings by engaging more sub-contractors rather than directly employed personnel. Furthermore, he expressed concern about a potential hike in corporation tax, which is the levy businesses pay on their earnings. He stated, “It’s an industry where lots of small businesses do go under, it’s high risk. We’re in a position where we could grow but we’re weighing up now that perhaps scaling back would be more sensible just to keep well within the threshold of Corporation Tax (and) minimise our risk.” David Holliday, from the Moongazer brewery in Hindringham near Fakenham, which produces ales such as ‘Tanky McTankface’, reported that business was “pretty good at the moment”. He commented, “We had a good summer. Don’t get me wrong, it was challenging, the cost of living crisis is still biting and it’s a hard pound to earn.” He cautioned against any rise in beer duty, but his primary apprehension centered on an issue impacting 250 to 300 of his key clientele – pubs. Business rates relief, implemented for hospitality enterprises due to the Covid-19 pandemic, is set to expire in April next year unless extended by the government. Mr. Holliday stated, “Many pubs are needing that to survive.” He added, “I know some pubs in Norwich that have business rates of £80-90,000. So that support (is worth) £40,000 a year and some landlords say that’s paying their salary.” Stephanie Godin launched her dog grooming enterprise in Dereham in August, having encountered difficulties securing employment. She explained, “I needed to find employment, so did something for myself.” Characterizing herself as “a crazy dog lady,” she noted that establishing Bark ‘n’ Bubbles aligned well with her significant interest, and her consistent client base was expanding. Prior to this year, she had not closely followed the Budget, but she expressed apprehension regarding any modifications to business rates. Presently, Ms. Godin’s business location is exempt from these rates, yet the government has pledged to overhaul the business rates system, leading her to feel uneasy about the potential implications of such changes. She remarked, “Any change could really impact me. It would mean another expense, it would affect my earnings and my cost of living. It’d affect my clients as I’d have to put my prices up.”