By George Jenkins

Small businesses in West Leeds say they are still uncertain about their future – two months after the Autumn Budget announcement.

The announcement from Chancellor Rachel Reeves has received poor feedback from business owners in West Leeds, with some even banning her from their premises entirely. 

Rachel Reeves is the MP for Leeds West and Pudsey, but many feel as though she isn’t present enough in her constituency, particularly with her responsibilities as Chancellor of the Exchequer. 

Many businesses WLD spoke to raised concerns over increasing business rates many have received or are due to receive in the coming months.

The Autumn Budget altered small business rate relief, meaning many businesses will receive less/no more discount to their business rates come April.

Concerns over the removal of rates relief for retail, hospitality, and leisure businesses, which will now enter new schemes, an increase in dividend tax, and an increase in the nationwide minimum and living wage have all been raised.

Whilst increased bills from alterations in small business rate relief are capped at £800 for the year, some business owners are still perturbed by the incoming costs.

Lyndsey Acaster, landlady at the The Old King’s Arms in Horsforth, said: “Things are very tough at the moment. We are having to prepare for the rise in everything that’s coming in April, with business rates going up, bounce back loans from Covid that still need repaying, minimum wage going up, and national insurance contributions, as well as rents rising along with everything else, so we are trying to squeeze every penny from everywhere we can.

“It feels as though small businesses are suffering. We are paying very high rates for not a lot of income; it’s difficult as they expect us to pay more out despite our takings being the same and, in some cases, even less.

“Business rates are going up a lot because we’ve been on a big discount since Covid. It’s all based on the rateable value of the property, but we’re hoping it won’t be as bad as it looks especially with all the uproar at the minute.

The discount on business rates depends on the properties rateable value, meaning how much it’s likely annual rent would be if it was available to let on an open market.

New schemes will see changes to small businesses’ rates depending on their background and rateable value, but this has been met by a backlash, as owners see it as unfair.

Deborah Hughes, owner of Springfield Carpets & Flooring in Farsley, added: “With business rates going up, we have had to put our prices up because it’s added to our overheads. That’s then lost us bits of business because we have had to put our prices up, and we’ve had to rent out half of our showroom to help with cash flow.

“We’ve received no support or help from the government, and I feel as though they are trying to hammer small businesses into the ground. Whatever companies they’re involved in, they make sure they’re looked after, but even a local like Rachel Reeves isn’t supporting her community, and I think that’s disgraceful.

“Prices are going to have to go up in line with business rates, but we won’t find that out until April; we’ve had no email or notification to tell us about an increase, it will just be thrown at us with no prior warning. I think local businesses are suffering enough, and the high street is going to be lost eventually.

“We’d just started to get over the pandemic, the high streets were starting to get busier, I’d notice in my shop it had started to get busier, and it’s almost like they waited for us to get back on our feet before knocking us down again.”

Mark Cox, owner of Farsley DIY and Pet Supplies, said: “I think this year there will see significant changes in general. I’ve heard people who were thinking about it, but since the budget announcement, they are now deciding to sell and move on. It’s like the straw that broke the camel’s back.

“I’m not asking for a handout, none of us are, but they talk about growth and supporting the high street, and then give everyone more tax to pay, that does the opposite of supporting us. We’re quite lucky in Farsley as we have quite a bit going on down the high street, but that isn’t helped by what the government are planning to do.

“For me personally, I think the business rates are going to be the biggest thing that are going to hit all of us, and it’s unfair how Rachel Reeves has backed down on hospitality and the pubs, but not on businesses like mine, meaning there’s a discrepancy there. Either we all pay it or none of us do.”

A big issue currently circulating is the disparity between business rates for companies operating in different fields.

Whilst businesses in retail, hospitality, and leisure are losing their 40% relief in business rates up to £110,000, they will now pay less tax if their rateable value is under £500,000. 

This is positive for businesses in this field, but companies outside of this bracket feel harshly treated.

Mark Cox added: “Tax should be fair, but this doesn’t seem fair; how could two properties next door to each other be paying totally different tax, just because one’s a pub and one’s a shop like mine””

Doreen’s Cafe is based in Fartown, Pudsey. Owner David Houseman said: “It’s quiet, it was busier in the middle of last year, but it’s quiet. I don’t know if that’s because it’s January, I’ve only been open a year, so I don’t know how it usually is.

“I receive small business relief, but food, electrics are going up, everything is going up, so it’s hard.

“When I go shopping at the wholesalers, you notice the prices keep going up, so in turn I’ve had to put my own prices up, to counter it, but then it has an effect on everyone.

“The increase in National Minimum Wage does impact small businesses, especially when you think about the cost over the year, so it definitely has an effect.”

Issues arising from the budget announcement only add onto the problems small businesses are facing daily, with increased costs shrinking profit margins and making survival even more difficult. 

Nigel Tate, owner of Gem-T Jewellers in Farsley, said: “The price of gold and silver has gone astronomically, which in ways can make life quite difficult for us; the price of stock goes up yet people are spending less.

“Raw materials and bills have increased in the last few years – you could bring a ring in to me and it’s double or treble the price it was three/four years ago. I don’t like having to tell customers how much it’s going to cost them, but it’s one of those things really.

“It feels like every man for themselves as a small business, some receive support whilst others don’t.”

Small businesses face an average 52% hike in business rates which poses an “existential threat” to local high streets in England, the Federation of Small Businesses (FSB) has said.

Treasury response

A UK Government spokesperson said: “Breathing life back into our high streets is a vital part of bringing economic growth to every part of the UK, and we are committed to working in partnership with local communities and businesses, including the hospitality and retail sector, to deliver this.”

“We’re backing high street businesses with a £4.3bn support package to limit bills rises, alongside capping Corporation Tax at 25%, cutting red tape and taking action on the cost of living.”

The government says it is raising the National Living and Minimum Wage to properly reward workers and will continue to monitor its impact on businesses.

Where businesses are seeing increases in  their valuations – following the  independent  assessment  by the Valuation Office  –  the government says it is stepping in to cap  their bills. This means most properties seeing increases will see them capped at 15% or less next year, or £800 for the smallest.

On pubs, before Christmas Chancellor Rachel Reeves commissioned work to look at a pubs support package, which the Exchequer Secretary to the Treasury Dan Tomlinson has been leading for a number of weeks.

A spokesperson added: “We recognise that pubs are the heart of our communities and we want them to thrive. Since the pandemic, they’ve faced tough conditions, and as the industry has said repeatedly – this isn’t about one issue, but a range of challenges including rising costs.

“That’s why the Chancellor commissioned the work to look at further support for the industry including on licencing and deregulation, but also recognising issues in relation to how pubs business rates are calculated.”

Prime Minister Sir Keir Starmer said on 7 January about business rates support: “During Covid the rates went down and that was coming to an end, and that is why we put in place interim relief as we move to the new rates.

“We are continuing to work with and talk to the sector on that support and what further support and action we can take.”