Hampshire reacts to series of changes in the Autumn Budget

Chancellor of the Exchequer, Jeremy Hunt, announced the Autumn Budget on Wednesday, November 22, with key changes including:

• National Insurance rate cut from 12 per cent to 10 per cent
• Benefits to rise in line with inflation
• Alcohol duty frozen until next August
• National Living Wage for over-21s will increase from £10.42 to £11.44 an hour
• State pension to rise by 8.5 per cent
• Plant and machinery tax break made permanent

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New business owners Ellie Brenchley and Dylan Limon, are preparing to open a barber shop in Walcote Place in early December. The couple believe the changes aren’t enough to encourage other independent businesses to open.

Ellie, 24, said: “Minimum wage should be the same from 16, they have every right to make that same amount of money. Our team will be on a much higher average wage for the industry.”

Dylan, 33, said: “Everyone is too scared to open a business because of the costs. There needs to be more incentives for small businesses.

"We’re fortunate that we don’t need a big space so we can open somewhere a bit cheaper, where as restaurants in a high-traffic area.”

Ellie and Dylan's barber shop to be (Image: Adele Bouchard)

Steve Robinson, landlord of the Bell Inn, said: “Minimum wage going up is great news for the staff but it’s the corporation tax is what’s important to my business. We’re just trying to keep a happy balance.”

Engineer Simon Gaffney, 40, from central Winchester, said: “You can put the minimum wage up but businesses are still going to suffer as people aren’t going to be spending money. I know so many people who are losing their businesses at the moment.

Simon Gaffney (Image: Adele Bouchard)

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“Personal tax has just got ridiculous, energy prices and everything else too.

“I used to have a Shepherd’s Hut business but when the tax cuts came in last year I must have lost about £300,000 in a week.

“People are being more cautious with their money and keeping it in the bank. The wage increases, national insurance cuts and business rates aren’t going to increase spending and that’s what businesses need people to be doing.

“I can’t afford to run my business in Winchester even though I live here.”

Dave and Mel Edmonds, who were visiting Winchester for the day from Waterlooville, said: “It’s good news about the minimum wage and the business rates but we are interested in the inheritance tax.

“It’s a shame they haven’t cut the inheritance tax.”

Elizabeth Neaves, 87, who lives in sheltered housing in Gordon Road, said: “It doesn’t affect me much. The state pension going up is good news, eight per cent is not bad.

“It’s not a bad budget really, everybody will always want more. I think I’m alright, I get enough money to live on and I manage quite well.

“People go on about the poor pensioners but I don’t think we do that badly.”

Hampshire Chamber’s chief executive, Ross McNally, said the budget was “better than expected”.

Ross McNally (Image: Hampshire Chamber of Commerce)

Mr McNally said: “The Chancellor has heeded calls from many in the business community, including ourselves, to create a more favourable environment for investment and growth. And it’s about time, after the economic shocks we have seen and the challenges we continue to face. 

“The extended freeze on the small business multiplier for business rates, and the extension of the 75 per cent discount for hospitality, retail and leisure will be a comfort to many although fundamental business rates reform remains to be done.

“Overall, this was not a gamechanger but it is certainly a better outcome than we had been expecting only a few weeks ago given the weaker growth forecasts since the Budget in March.

“We stand with our members to make sure that Hampshire makes the most of every opportunity the Autumn Statement offers.”

Michaela Johns, director at Hampshire-based HWB Chartered Accountants, said: “The government is cutting the main rate of Class 1 employee National Insurance contributions, saving those on an average salary of £35,000 more than £450 a year. This will no doubt cause payroll issues with software suppliers needing to amend their packages quickly.

Michaela Johns (Image: HWB Chartered Accountants)

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“The chancellor cutting National Insurance contributions for the self-employed – who many people call the backbone of this country – is to be applauded. However, tax remains at a 70-year high.

“In the retail, hospitality and leisure sector the 75 per cent relief will be extended to ensure the most vulnerable businesses can be supported. This measure gives these businesses a little more certainty for the next 12 months.

“We also welcome the package of investment worth £20bn a year to support growth in the economy. The tax allowance of fully expensing capital investment, permanently, is great news for small and medium enterprise owners who are the lifeblood of the UK economy.”

Geoff Cooper (Image: Geoff Cooper)

Geoff Cooper, Liberal Democrat spokesperson for Romsey and Southampton North, said: “This is a budget full of pre-election sweeteners and many people will see less of their earnings going to the government next year.  However, most will not feel better off because this is set against a background of rising food and fuel prices and swingeing increases in mortgages.

“But the public are not easily fooled and will recall the years of pay freezes and austerity, particularly if they work in the public sector. After 13 years of Conservative government most people are worse off financially and are also suffering the effects of underinvestment in our public services.

“In real terms we might pay a little less than today but more than we were paying in summer 2022
Today’s statement will fool no-one."