Budget news could make some Shropshire businesses 'think twice' on resources

Chancellor Rachel Reeves confirmed a £25 billion raid on employers’ national insurance contributions, with higher rates and a lower starting threshold.

The rate will increase by 1.2 percentage points to 15 per cent from April 2025, with payments starting when an employee earns £5,000, down from the current £9,100.

She also unveiled a National Living Wage increase of 6.7 per cent to £12.21 an hour, also increasing the minimum wage for 18-20 year olds by 16.3 per cent.

The retail, hospitality and leisure industry will receive 40 per cent relief on business rates from 2025/26, the chancellor added.

But Alasdair Hobbs, owner of Human Results based in Telford said: "The minimum wage hike and national insurance, for the young especially, is going to make smaller employers especially to think twice about their resources and I worry that it will impact on the number of training opportunities for graduates, and a rise in youth unemployment in particular.

"I have spoken at length recently about business owners being worried by the incoming Employment Rights Bill, and many of my clients are saying they simply don't want to recruit new staff unless they absolutely have to.

"I can understand why small business owners in particular will be feeling rather frustrated with this budget, which at face value seems to be hitting them with tax rises and National Insurance contribution increases which will have a negative impact on their bottom line."

Anthony Nicholls, who owns Anthony's of Wellington, said: "It's taking a lot of fun out of running your own business – large, medium and small – and I don't see any winners out of it to be honest with you."