Budgeting for Hope: Small Businesses Face the Financial Reality

Chancellor Rachel Reeves is set to deliver her Budget on Wednesday, sparking widespread speculation about who will benefit this time. Following her October 2024 Budget, many small businesses are still grappling with profound changes, particularly regarding the rise in national insurance (NI) costs. Neil Woodbridge, who owns Thurrock Lifestyle Solutions, described the previous adjustments as “disastrous,” leading to an unforeseen monthly increase of £8,000 in expenses. This financial strain has directly affected the staff pay, preventing him from offering much-needed raises, further exacerbating staff recruitment issues due to insufficient wages in the social care sector.

Gina Bonsu, a businesswoman from Grays, echoes Woodbridge’s sentiments regarding the two-child benefit cap, advocating its removal to benefit struggling families. She has noticed a decline in consumer spending, leading her to hesitate on expanding her workforce. Meanwhile, John Paddick, who operates the Thurrock Centre for Independent Living, warns of impending closure due to severe financial constraints and a decrease in charitable contributions, significantly impacting services for people with disabilities.

In contrast, Dean Plunkett, who manages Eazee Learning, expresses a more optimistic view, noting slight improvements in NHS services but acknowledging longer A&E waiting times. He hopes the upcoming Budget will prioritize support for the disability community and address rising costs of living. Overall, these small business leaders reveal the complex struggle for sustainability amidst ongoing financial challenges, and they share a collective hope that upcoming policy changes will alleviate some of the burdens they face.