• 2 months ago
Businesses in Medway say they might have to lay off staff.

Oliver Leader de Saxe reports.
Transcript
00:00This budget raises taxes by £40 billion.
00:03Businesses reeling, voters divided, the voluntary sector exasperated.
00:09But does Labour's first budget in more than a decade actually mean more cash for Kent?
00:17Well, for the working man and those in need, the budget might bring welcome relief.
00:22Minimum wage has skyrocketed, meaning you could be earning more than a grand extra a year.
00:30But not everyone on Rochester High Street thinks this will pay off.
00:35I think that's good for people on minimum wage, but it's not good for small businesses
00:40because they've obviously got to pay that minimum wage and probably less people will get employed.
00:45I'm happy that it's gone up.
00:48The cost of living rises, it needs to, especially for the younger people trying to get into the play,
00:55finding places to live, the apprentices.
00:56The 16 to 18 year olds, good for them. For people over that limit, I think it's just going to have a knock-on effect
01:05on small coffee shop businesses because they've got to pass that cost on.
01:11The burden for these cost of living measures is on employers.
01:16With national insurance contributions for businesses rising to 15%,
01:23combined with the new minimum wage, there are worries smaller businesses will feel the brunt.
01:30We're looking, you know, £140 to £160 a week extra costs without actually any other way of...
01:40The only way we can actually find that money is to absorb it from our margin, from our own wages,
01:47from being self-employed and such like.
01:49So, yeah, it's a bit of a bummer.
01:51Clearly what's going to happen is all small businesses will just have to tighten their belts,
01:56lay off staff, reduce margin, reduce expectations,
02:01or what we will have to do next year is not take a holiday.
02:03So that'll be it.
02:04And even charities and food banks here in Chatham are fearing for the worst.
02:10As an employer, it's not good.
02:12We're getting hit twice, so we've now got to pay more national insurance contributions
02:16and the minimum wage has gone up.
02:17So we struggle. We're struggling as it is.
02:20So for us to add that additional cost is just madness for us.
02:24You know, we might end up having to make cuts ourselves and there might be job losses.
02:28The government say they have to make difficult decisions to balance the books.
02:33And while this budget will be welcomed by those struggling to make ends meet,
02:38it's clear not everyone here in Kent is a fan of the taxman.
02:44Oliver Leader, the Saks 4 KMTV in Rochester.

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