Budget reaction from Lincolnshire and Newark

Measures like increases to employer's national insurance contributions have been unveiled by Rachel Reeves

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Author: Andy MarshPublished 31st Oct 2024

Businesses across Lincolnshire and Newark have told us measures like cutting jobs may have to be considered following yesterday's budget.

The chancellor announced an increase in the minimum wage whilst also raising employer contributions to national insurance

Rachel Reeves says tough measure are necessary because of the state of the public finances.

We've been to Newark market to speak to traders there about the budget and what it may mean for them.

Tony told us his fears about the increase in national insurance contributions for employers.

I think the big boys can afford the money but not for small business

He says: "That's a massive tax on business - that's a tax business can ill afford to pay when they're on the breadline now."

"I think the big boys can afford the money but not for small business."

"I saw someone on television the other day - he had tears in his eyes - he was a hairdresser and you can understand it."

"They're going to lay people off and in the long term it's going to get bleaker."

Nicky is another trader at the market and is concerned about the minimum wage increase..

She said: "With us all being family we're well looked after but we have to pass anything on to our customer base which we don't want to do."

It's going to mean a shrinkage in the charitable sector

Michele Jolly is from Age UK Lincoln and South Lincolnshire says it may impact their services,

"We have become essential service providers to the citizens of Lincolnshire and this budget offers real challenges to us."

"It's going to mean a shrinkage in the charitable sector - I can't see how it won't."

Louth and Horncastle MP Victoria Atkins gave her her reaction.

"It's a budget of broken promises."

"The Labour party didn't make many promises before the general election but the 2 promises they made were that they weren't going to fiddle the fiscal rules to enable higher spending and they weren't going to raise taxes on working people."

"Today Rachel Reeves broke both of those promises."

Labour deny breaking promises and say these measures were needed.

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