Two small business owners have spoken to The i Paper about their concerns ahead of the Budget next month.
In the aftermath of Chancellor Rachel Reeves’s last Budget in the autumn of 2024, businesses across Britain found themselves grappling with higher employer national insurance (NI) contributions and minimum wage costs.
Since then, many small firms say they are struggling, seeing costs rise as consumer sentiment and priorities change as they tighten their purse strings.
Taxes could prompt more of my wealthy clients to leave Britain
Darya Simanovich, 41, lives in Chelsea, London, with her husband and their three children. She is “dreading” the upcoming Budget and is worried new measures could pile further pressure on small businesses like hers.
Ms Simanovich set up Chelsea Swim School in 2014, which offers small-group and private swimming lessons for babies and children.
She told The i Paper the past year had been “incredibly challenging” for her business.
“Costs for everything have increased, including for pool maintenance, cleaning, supplies, chemicals, energy bills, insurance and staffing. This is happening at the same time many families are cutting back on activities.”
In the last year, Ms Simanovich’s energy bills for the business have risen by 40 per cent, while cleaning products and chemical costs are 30 per cent higher. Her staff wages are also up 15 to 20 per cent.
“The rise in employer NI had a noticeable impact. We operate on very tight margins, and extra employer NI makes it harder to keep good teachers while paying them fairly.”
square SAVING AND BANKING Cash ISA limit could be reduced to £10k - this is what you should do
Read More
National minimum wage rises introduced by Reeves in the 2024 Budget also had a marked impact on Ms Simanovich’s operations.
“I support fair pay, but small businesses like mine don’t have the same financial flexibility as larger chains. We had to absorb most of these costs rather than pass them on to parents or carers, adding further pressure on our margins.”
Ms Simanovich said some of her former clients have already left Britain to live abroad and is worried more may leave if further tax hikes are put in place.
“Several of our international and high-earning clients have relocated to countries like Dubai, Monaco or Portugal. The rising cost-of-living, higher taxes and uncertainty about the UK’s economic direction have driven them away”, Ms Simanovich said.
“These were long-standing clients who booked regular term packages and private hire sessions, so their departure has definitely been felt.”
Ms Simanovich is very concerned about what the Chancellor could announce in November’s Budget.
She said: “I am dreading it. Each Budget seems to add more financial pressure for small business owners. There’s higher taxes, more compliance, but little tangible support.
“It’s becoming harder to plan ahead or feel optimistic about growth. Another increase in the minimum wage or employer NI would hit us hard. A wealth or property tax could also push more of our remaining client base out of the country.
“If small business energy support is reduced again, it will make operations even tougher.”
Ms Simanovich would like Reeves to freeze employer NI and VAT thresholds and announce targeted relief for small businesses in the education and leisure sectors.
She added: “Tax incentives for parents investing in children’s activities would also help – these experiences are essentials, not luxuries.”
Ongoing Budget uncertainty is hitting my business
Amanda Marshall, 50, lives on a small farm in west Devon with her parents and her children.
She runs 3 Donkeys Clothing, a small business specialising in the design, manufacture and sale of women’s coveralls and apparel. On top of running her small business, Ms Marshall helps run the family farm.
Ms Marshall’s British manufacturing costs have risen by around 40 per cent since the October 2024 Budget, meaning she is now, reluctantly, reassessing her production routes.
“The last year has been challenging. With higher price points, my products are usually part of a more considered purchase for people rather than an impulse buy.”
She added: “Higher employer NI has definitely had a knock-on effect for my business. I sell directly to individuals as well as to small businesses, and rising costs among both groups have hit confidence hard.
“Many of the small businesses I supply are now looking for cheaper alternatives to workwear to manage rising costs, even though the quality can’t be matched. Individual shoppers are also more cautious about their spending.”
She said: “The uncertainty surrounding the Budget is already having an impact on my business and other small business owners.
“Consumer confidence is low, and both individual customers and small businesses are holding back on non-essential spending until they know what’s coming. This hesitation trickles down to everything, from personal purchases to business orders. It creates a difficult environment for planning and growth.”
Looking to November, Ms Marshall said: “Any increase in taxes or the minimum wage would be challenging for my business and the wider network of customers I serve. Higher taxes would put additional pressure on small businesses and reduce the disposable incomes for people, who would tighten their purse strings even further.”
Ms Marshall has a number of ideas for Reeves ahead of the Budget next month.
“I’d like to see improved access to funding for small businesses, particularly for female founders like myself. Such funding would need to offer fairer interest rates and more flexible repayment options to encourage investment and growth.
“Support should also extend to individuals who run or rely on small rural enterprises, as they are often among the hardest hit by rising costs.”
Hence then, the article about why small business owners fear the budget from tax to the wealthy leaving the uk was published today ( ) and is available on inews ( Middle East ) The editorial team at PressBee has edited and verified it, and it may have been modified, fully republished, or quoted. You can read and follow the updates of this news or article from its original source.
Read More Details
Finally We wish PressBee provided you with enough information of ( Why small business owners fear the Budget – from tax to the wealthy leaving the UK )
Also on site :
- Education technology on rise in Japan to ease teachers' burden
- Xerox set to reduce its workforce after acquiring the company Lexmark
- Russia to test all labor migrants for hepatitis