CHANCELLOR Rachel Reeves delivered the Budget last Wednesday, but the fallout has been heated and Winchester's businesses are not immune.
Among the proposals she set out National Insurance contributions and increases to the Minimum Wage were among the most divisive in Winchester.
Asked to comment on the potential impact of Labour's budget on Winchester's businesses, MP Dr Danny Chambers said: "Funding the NHS and education is right, but it was a political choice for the government to target small businesses for the bulk of their tax increases.
"Unlike the Conservatives, who just want to continue cutting public services, the Liberal Democrats want the government to get the big banks, large tech companies and hugely profitable oil and gas industries to pay their fair share to get our public services working again."
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Dr Chambers noted National Insurance rises among the biggest problems with the Budget, saying care homes, GP surgeries and hospices would be hit.
He asserted: "I recently visited Winchester Hospice and saw how hard the staff there work. This extra burden is the last thing they need."
The MP for Winchester also raised concerns over inheritance tax, in particular how it will affect family-run farms.
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Dr Chambers was not alone in his concerns. Winchester BID noted all but the smallest of employers would be hit by the Chancellor's measures.
"Many will now be calculating how much this will cost them. Some sectors will be able to pass on this cost to customers, while others such as those which rely on discretionary spending may have no choice but to limit pay increases for their staff," said executive director Dr Paul Spencer.
Dr Spencer welcomed the Government's address of business rates, but said it should have gone further.
He said: "Eligible retail, hospitality and leisure businesses in 2025-26 will receive 40 per cent relief on their business rates liability, but it is currently 75 per cent.
"The small business multiplier in England will be frozen and from 2026-27 the Government intends to introduce permanently lower multipliers for retail, leisure and hospitality which will be welcomed, but I expect doesn’t go as far as many would have liked to see."
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In Winchester the Chronicle spoke to Karen Hitchings, owner of H&B Lifestyle Boutique, who recently moved her enterprise to a larger premises.
Karen who set up her business five years ago and survived Covid, said: "For some of us, those like me who took a leap of faith to try and grow our businesses and keep independent stores in business, its disappointing. Rates are so high in the first place."
The Chronicle also approached Harriet France, director of Jeremy France Jewellers, who said: "For most people getting a salary it will give them confidence to spend.
"However, I feel the impact, particularly on small businesses and owners, I think they will struggle to maintain the level of service they are currently able to provide their customers."
Harriet believed her business would be able to cope, but it would not be easy and she was particularly worried for the food and hospitality industry.
She continued: "The cost of having an appropriate level of staff to help customers in a timely and relaxed manner will be harder and more expensive, which could lead to some businesses reducing hours for staff and more stress for their teams."
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