Small Business Owner Foresees Hardship from National Insurance Increase

A small business proprietor in south London has stated that the National Insurance (NI) increase, revealed in the recent Budget, will significantly impact her company’s operating costs. Sally Butcher, who owns Persepolis, a Middle Eastern shop and restaurant located in Peckham, indicated that the elevated expense would necessitate her working additional hours weekly. During the Budget presentation, Chancellor Rachel Reeves declared that NI contributions would increase from 13.8% to 15%, and the earnings threshold at which companies commence paying NI for employees would be reduced from £9,100 to £5,000. Mrs Butcher commented, “Realistically, when things like this happen, what it means is that my husband and I have to work harder because we can afford less staff shifts.” Mrs Butcher, who has operated the business on Peckham High Street for nearly 23 years, further stated, “I already work a 90 hour week.” She elaborated, “What it means is those extra half shifts where I think, ‘I’ll just get someone else in and go to the pub’, means actually I’ll stay behind, I’ll work that shift.” She conveyed that the NI adjustments will render “my life much, much harder and the lives of millions of restauranteurs and small business owners up and down the country.” She added, “It’s making it less easy to offer employment and give out jobs to those who need it. We actually have to really review our staffing resources – keep a tight reign.” Conversely, Kieron Williams, the Labour leader of Southwark Council, defended the Budget, informing BBC London that modifications to business rates were included “that I think will really benefit many small business owners”. He further remarked, “I think the decision to invest in increasing the minimum wage up to a real living wage, is such an important one for residents though.” Williams stated, “In the cost of living crisis, people having a decent wage that they can afford to live on is fundamentally important. “And there are many other announcements in there that will help us deliver the growth and prosperity that allow small businesses to get on.” Patrons within Persepolis expressed varied opinions regarding the Budget. Ivar Grey, aged 76, voiced apprehension about whether small enterprises such as Mrs Butcher’s restaurants would receive adequate governmental assistance, and also raised questions about the 4.1% increase in the state pension effective next year. He commented, “It’s nice to give the pensioners 4.1% but many pensioners don’t need it.” Grey suggested, “I think it would be a lot nicer on the pensions if they’d focussed the money on those in the greatest need.” He proceeded, “I’m a great believer in the people who need the support should get the support.” Grey concluded, “People like myself, frankly, don’t need the 4%. It’s very nice, I’ll buy another bottle of wine, but it would be a lot nicer if the people who needed it got it.” Meanwhile, Claire Grey, who is Mr Grey’s cousin, mentioned her intention to review the newspapers the following day to learn about what the government was “taking away as well as giving”. She stated, “They took away the winter fuel allowance, but I never felt I deserved that anyway.” She added, “They’re in a rotten situation. I just hope that they’ve got enough good plans that they can mend a few things that are broken.” Presenting the Budget, Reeves informed Members of Parliament that it represented “a moment of fundamental choice for Britain”. She declared, “I have made my choices. The responsible choices. To restore stability to our country. To protect working people.” For more content, listeners can access BBC Radio London on Sounds and follow BBC London on Facebook, X, and Instagram. Story ideas can be submitted to hello.bbclondon@bbc.co.uk. Copyright 2024 BBC. All rights reserved. The BBC disclaims responsibility for the content found on external sites. Information regarding their approach to external linking is available.