SMALL business owners fear tax rises and higher costs announced in the Budget next week “could make running a business in the UK untenable”. They also worry there could be a “Truss-like run on the Pound”.
Chancellor Rachel Reeves will set out her plans for the economy on Wednesday November 26th when a raft of tax increases are expected to be unveiled on already struggling UK businesses.
Local businesses have shared what they fear most from the Autumn Budget – with worries that the rise in National Insurance costs at the last Budget was indicative of a focus on hitting small businesses.
Tony Redondo, Founder at Newquay-based Cosmos Currency Exchange, said he fears “stealth taxes with yet another freeze on income tax thresholds”.
He also worries about an increase in dividend tax and capital gains tax, and more red tape.
He added: “Another rise in business taxes could make running a firm in the UK untenable. We could have a Truss-like run on the Pound if the bond vigilantes give a thumbs down to the Budget next week.”
James Cane, Director at James Cane – The Truro Estate Agent, said he fears property will be targeted by the government.
In response to being asked what he worries about most in the Budget, he said: “A rise in stamp duty or any sort of extra tax involved in buying or selling property.”
“There has been talk of a stamp duty payable not only when buying a house but also when selling, which would be really detrimental to an already poor market.”
Andrew Wattsford, finance specialist at Wattsford Commercial Finance, said he fears a tax hike on businesses.
He added: “It would be folly to raise taxes at the expense of the very firms that drive employment, innovation and tax revenue. Penalising enterprise during a fragile recovery risks undermining the economy.”
Tim Cooper-Cocks, business development specialist at Tomorrow Assured, said he worries that businesses are on the edge.
He continued: “My main concern is anything that increases operational costs or adds complexity at a time when many businesses are already juggling tight margins.
“Sudden shifts, especially around taxation, can unsettle confidence.”
Lewis Hallam, owner of Lemiyu, also fears taxes aimed at small businesses that are already under pressure.
He added: “There will probably be more initiatives that are disguised as ‘support’, but actually favour larger companies or outdated models whilst punishing those that are trying to establish a foothold.
“There’s always a fear of tax increases as well, which continue to make it harder for small firms to remain competitive.”
Patricia Fox, Managing Director at Figurefox Chartered Certified Accountants, said: “My only message is this: just because someone is running a business as a sole trader or limited company doesn’t mean they are earning huge amounts. Penalising these people for not being “workers” — i.e. employees — is not fair.”
She added: “These micro-entrepreneurs hold up the economy. And yet they are often treated badly. Sole directors of limited companies cannot get the employers allowance and have already been given an extra NI bill of £1k last year.
“These are the people who got no support during Covid and no self-employment income support.”
Paul Stamp, Partner at Ultimate Funding Solutions, said he fears income, business and corporation tax increases.
He continued: “Since the start of summer there has been a reduction in the flow of business – turning into a significant reduction the closer we have got to the Budget.
“Uncertainty is the feeling at the moment and sadly this will continue until the Budget – after which hopefully there will be some clarity in terms of moving forward.”
John Dunwell, owner of Mr Merchandise, summed it all up very simply: “I think the country has got itself into a serious hole that no-one seems to know how to get out of.”
