South East reacts to budget: NHS and education spending welcomed, small businesses raise concerns

Proposals for increased expenditure on the National Health Service and educational initiatives, presented in the budget on Wednesday, have been met with approval across the South East region. However, the proposed rises in employers’ national insurance contributions and the national minimum wage have generated apprehension among proprietors of small businesses. These provisions were part of the announcements made by Chancellor of the Exchequer Rachel Reeves during the inaugural budget of the new Labour government, delivered on Wednesday. BBC South East has gathered responses from individuals paying tax, proprietors of businesses, and political figures throughout the region. Peter and Deborah Bishop, residents of Littlehampton, West Sussex, view the additional funding allocated to the NHS as positive news. Ms Bishop stated, “That’s got to be their first priority,” adding, “that’s good for everybody”. Adele Hibbert, from Worthing, West Sussex, who previously worked for the NHS, commented that the additional funds were considerably overdue. She recounted experiencing difficulties such as being “short staffed constantly, instead of having six patients you’d be looking after 12”. The Chancellor declared an allocation of an additional £1.3 billion in grant funding for local councils, characterizing this as a “significant real-terms funding increase” for local government. Tim Oliver, who serves as the leader of Conservative-controlled Surrey County Council and chairman of the County Councils Network, remarked that the funding “does not eradicate councils’ funding gap” because local authorities would also face “significant additional expense due to the increase in the National Living Wage”. He further stated: “Therefore, councils will have little choice but to raise council tax and still will need to take difficult decisions over services to balance their budgets.” Conversely, Bella Sankey, leader of the Labour-run Brighton & Hove City Council, commented: “The measures will not solve all our problems overnight, but it does signify an important change in approach from the new government to addressing the root causes of problems such as housing supply.” Liz Arnold, who owns All Sorts Airsoft Fantasy Games in Littlehampton, expressed apprehension regarding the rises in employers’ national insurance contributions and the national minimum wage. She stated: “I think it’s going to be quite damaging for smaller businesses.” She added, “I’m sure some will have to lay staff off because they can’t afford it.” Rupert Thompson, managing director of the Hogs Back Brewery located in Tongham, Surrey, remarked: “It puts a brake on our ability to invest and so create more jobs.” Emily Eyre from Cucumber Catering in Sittingbourne, Kent, indicated that she would need to increase prices and would be discouraged from recruiting new employees, though she noted the budget was “not as bad as expected”. She commented: “The employment allowance increase will offset the increase in national insurance. I was really pleased to see the business rate relief for catering and hospitality.” Tim Aker, representing the Federation of Small Business in Kent, stated: “Businesses grow best when they can see the direction of travel and know what we are dealing with. “My hope is today we start to see where the country is moving and a positive message about the economy starts to emerge.” Educational expenditure is set to encompass £1 billion for special educational needs, a decision that received partial endorsement from Monica Harding, the Liberal Democrat MP for Esher and Walton, who suggested the amount ought to have been £4 billion. For updates, follow BBC Sussex on Facebook, X, and Instagram. Story submissions can be sent to southeasttoday@bbc.co.uk or via WhatsApp at 08081 002250. Copyright 2024 BBC. All rights reserved. The BBC bears no responsibility for the material on external websites. Information regarding our policy on external links is available.