Small businesses in Bath and North East Somerset are facing financial challenges as a result of increased national insurance contributions and soaring ingredient costs. Employees could potentially lose nearly £3,000 each by 2030 due to the national insurance changes, with an average loss of £469 expected in the next year alone. Local Liberal Democrat MPs are calling for the immediate removal of the “jobs tax” and a reform of the business rates system to prevent further damage to the struggling sector.
Wera Hobhouse, Bath’s Liberal Democrat MP, warns that the increase in national insurance contributions could push some local businesses over the edge, with reports from various small businesses, including cafes, waterproofing specialists, and fitness studios, confirming the sector’s strain.
Maureen Lechmere, owner of the Fudge Factory in Bath, expressed the significant challenges faced by retail businesses, citing a considerable increase in staff wages, and an 89% rise in the cost of their key ingredient, Belgian chocolate. These rising costs are putting immense pressure on small businesses, significantly impacting their operations.
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The local Liberal Democrat MPs are urging the government to reconsider its policies, stressing that the current economic strain, coupled with the jobs tax, risks leaving local businesses on the brink of closure and exacerbating the cost of living crisis. This call for action is also echoed by Anna Sabine, Liberal Democrat MP for Frome and East Somerset, who emphasizes the need to support local businesses and alleviate the pressures they are currently facing.