Nova Fairbank, Chief Executive of Norfolk Chambers of Commerce “Today’s budget will put pressure on many businesses. Whilst the Chancellor has provided clarity on the Government’s manifesto, from an average business perspective, the significant increase in employers national insurance contributions, combined with the reduction on the employers secondary threshold from £9,000 to £5,000 will be challenging for many firms to be able to absorb the additional costs. Whilst, the smallest firms will welcome the additional help that increasing the employer allowance from £5,000 to £10,500, which will offset some of the tax pain, any business, with effectively more than 15 employees, will still face greater financial burden. There will be large number of businesses looking at the increased employer costs and seeing no option but to consider increasing their own prices to their customers. One such business is a Norfolk-based family pub operator, with multiple sites and employing circa 50 people. They commented: “Hospitality has never fully recovered from the adverse economic and consumer behaviour impact of the Covid-19 pandemic and following the energy crisis and the current cost of living crisis, the announcement that the national minimum age is to increase for apprentices and 16-17 and 18-20 year olds is a further swingeing blow to an already fragile industry in Norfolk and across the UK as a whole. “Pubs and restaurants rely upon young people to perform important customer service roles and with disposable incomes reduced and consumer spending already being suppressed by the cost-of-living crisis, the adverse impact of a labour overhead increase of this magnitude will invariably result in increased prices for consumers and a reluctance for hospitality operators to hire and create employment.” On the more positive side, the announcement that business rates for 2026/2027 will have two lower tax rate bands for retail, hospitality and leisure will be welcomed by these businesses. As a region, businesses will be looking carefully at how to capitalise on the government’s proposed investment plans for sectors such as life sciences, creative and engineering. We also welcome Ms Reeves announcement on the investment in broadband for rural areas. Norfolk businesses and residents alike are aware of the pothole challenges in this region, so further investment for roads maintenance will be welcomed by all, but it was disappointing to not hear of any further infrastructure investments in the East, apart from East/West rail for Cambridge. To help the sustainability agenda and to progress economic growth, we really need to see the Ely/Haughley rail junctions be delivered as soon as possible.”
