Budget 2024: “This budget will cost my business £25k a year”

We’ve been catching up with retailers who gave predictions before Rachel Reeves’ statement to see how they feel about the details of the Autumn Budget.

Sue Nithyanandan (below), manager of the Costcutter in Epsom, admitted she had high hopes for the budget announcement when we spoke to her earlier this week, but says the news has brought uncertainty. “The increase in employer national insurance contributions - taking the figure to 15% and reducing the threshold to £5,000 - will be hitting my bottom line drastically. Together with an increase in the national living wage and business rates I’ve estimated that this budget will cost my business around £25,000 a year,” she explains.

The immediate future is also uncertain, Sue says. “It will prevent me giving any payrise or incentivising my team as the business is carrying a bigger burden of taxation. Also, the increase in any costs to businesses will be passed down to the consumer as the costs to the supply chain will add to the food price inflation.

“The chancellor is not going to be able to bring down inflation and create growth in the economy. This wasn’t a budget for growth but a budget to academically balance the books without thinking creatively about how to grow the economy. Businesses will not be happy and there is going to be a lot uncertainty for many small to medium enterprises.”

Elsewhere, there was real fear that the impact of the Budget might send some retailers away from the industry. Trudy Davies (left), who runs a newsagent, bakery and grocery store in Llanidloes, said:  ”I fear for some retailers who are on the edge of being viable - this moment may just tip them over the edge - ans shut doors for good.”