Norfolk brewer warns 'relentless rise' in out-goings will harm small businesses
It's estimated that over 3 million people will start being paid more, now the national living wage has increase
A brewer in Norfolk is telling us that 'relentless' rises in out-goings will affect businesses across the county and result in many shutting up shop, for good.
The national living wage has increased by 77 pence to £12.21, as of today. While water and energy bills are also going up for businesses and households across the UK.
"All the costs that you shoulder means there's less money to reinvest"
David Holliday is from Moon Gazer Ales, based near Fakenham:
"I fear for added costs all the time, in terms of pubs, especially when you hear about lots of people being laid off.
"So, if you multiply that issue to smaller businesses who are harder to run, as you're working with shoe-string staff, it just makes the service-levels harder.
"What you're trying to do as a small business is to absorb as much of the costs as you can, without passing it on, to be inflationary. But all the costs that you shoulder means there's less money to reinvest.
"Cut VAT in hospitality, it works everywhere else that it's been done. It increases tax take and revenue, while also helping increase the margins that hospitality businesses can make. It really is a win-win.
What's the Government doing here?
The Government's Energy Bills Discount Scheme expired yesterday and is yet to be replaced.
In the Autumn budget it was announced that eligible retail, hospitality, and leisure businesses can expect a 40% business rates relief, capped at £110,000 per business. More details can be found here.