Business rates rise could keep unemployment high in Kent
Business rates in England are set for significant increases from April 1, with hospitality and pubs facing increases of up to 15 percent
The head of Kent and Invicta Chamber of Commerce, Tudor Price, has warned that unemployment in the region may not improve soon as businesses face higher rates.
Starting from 1st April, business rates across England and Wales will see increases, with pubs and hospitality facing some of the steepest hikes at up to 15 percent.
Mr Price has linked the unemployment rise to last year's budget:
"We're not surprised at the increase in the number of people unemployed at the moment. This is clearly a direct link back to the employers National Insurance contributions going up in the budget last year," Mr Price said.
He adds the rise in AI is contributing to unemployment rates:
"We know a lot of employers at the moment are trying to see how they can improve productivity with AI. So when someone's leave, they're not being replaced at the moment. I'd like to think that's going to change, but it's unlikely." Mr Price added.
Moreover, the impending rise in business rates may further hinder employment opportunities.
"We are about to have a major lift in business rates. Many employers are going to find quite a nasty surprise landing on their doormats next month. I'm sorry to say, this is probably going to continue that barrier to employment. So we're not out of the woods yet.
"Clearly there needs to be some action taken at government to try and address this," says Mr Price.
SMEs acting as 'silent shock absorbers'
Reports show small businesses are facing real challenges due to increasing costs and tax burdens.
In the run up to Chancellor Rachel Reeves’s Spring statement, Simply Business has released research demonstrating how SMEs are absorbing costs to protect consumers amidst the cost-of-living crisis.
It reveals 18 percent of SME owners may need to use personal savings to sustain their businesses, while 22 percent might put expansion plans on hold.
Simply Business is urging the government to focus on alleviating challenges in the Spring Statement on Tuesday 3 March to foster growth for small businesses.