A local entrepreneur has spoken out about the challenges businesses are facing following an increase in taxes.
Despite their remarkable success – winning Gold at the World Cider Awards – Barny Butterfield, the founder of Sandford Orchards near Crediton, says Labour’s decision to increase employers’ national insurance contributions and business rates is making life much harder for entrepreneurs.
This increase in employer National Insurance will mean more money will go towards the NHS and increases funding for contributory benefits like the state pension, easing wider pressures on the public finances.
It contributes to the Government’s announcement of £22.6 billion in additional day-to-day spending over two years for the Department of Health and Social Care, including the NHS.
However Mel Stride, Tory MP for Central Devon, is concerned about the impact of the extra taxes on businesses in this part of the world.
The MP said: “As an entrepreneur, who has built businesses from scratch, I understand the challenges businesses are facing. With the Government increasing employers’ national insurance contributions, as well as business rates, the burden on small producers like Sandford Orchards is only growing.
“The Government needs to create an environment where businesses like Sandford Orchards can continue to succeed, providing employment and contributing to the local economy for many years to come.”
According to the British Beer and Pub Association (BBPA), the UK’s beer and pub sector contributes more than £34 billion to the economy and supports over one million jobs.
The BBPA say the combined impact of the tax increases announced at Labour’s Budget could cost pubs and breweries an additional £650 million.
Mr Stride said: “Pubs and small businesses are essential to the heart of our communities in Central Devon. They provide employment, support our local economy, and contribute to our identity. As Shadow Chancellor, I am committed to fighting for policies that will help local businesses and pubs not just survive but thrive.”