Small businesses in Essex "only just preparing" for Autumn Budget effects
With the increase in NI contributions coming in next week, Sam Dimond from Spotlight Sound expects "many job losses"
As we approach the Spring Statement, or what the Conservatives have called an "emergency budget", we're hearing from a small business in Essex who are just preparing for the impacts of the Autumn Budget.
Chancellor Rachel Reeves will deliver her Spring Statement to Parliament on Wednesday, 26 March.
The Statement is a bigger event than it was expected to be just a few months ago, with Reeves giving the pretext that "the world has changed".
From next week, the effects of her Autumn Budget will kick in with National Insurance contributions set to rise from 13.8% to 15% and the reduced earnings threshold go down from £9,100 to £5,000.
These cost increases are going to put companies in Essex, particularly Small and Medium-sized Enterprises (SMEs), under "real pressure", says business owner Sam Dimond.
Mr Dimond is the CEO of Spotlight Sound, an events production and AV installation enterprise in Chelmsford.
The company are gearing up for the changes: "we've got to be more careful about allocating hours to jobs, and what we charge for smaller jobs."
We are trying to be more efficient and grow but the government are making it "very difficult".
CEO, Sam Dimond, is calling on the government to "invest in people".
"It feels like every solution the government is reaching for involves taxing small businesses, which makes it harder for us to create jobs and invest in people, which is exactly what the economy needs more of right now.
For SMEs as a whole, Mr Dimond predicts companies will try and be more flexible, using more ad-hoc staff and freelancers which he says is "good for the short-term but not long-term".
He adds: "we're already struggling with getting young people into the industry and building a career, and hitting us with another tax hike feels out of touch."
Today we will see shadow chancellor Mel Stride responding to the Chancellor in the House of Commons, rather than the leader of the opposition as happens on Budget Day.
The statement will not be a “tax and spend” event, Reeves has said, however spending cuts are expected.
The Chancellor has also repeatedly said she will not budge from her fiscal rules, which rule out borrowing to fund day-to-day spending.
"We did have to put up some taxes on businesses and the wealthiest in the country in the Budget," she said of the Autumn Budget last year.
"We will not be doing that in the Spring Statement".