Bexhill: Budget is like an 'atom bomb dropped on small businesses', says business leader

Howard Martin, Bexhill Chamber of Commerce president, added that the chamber had received ‘so many calls’ from business owners in ‘almost tears of desperation’.

He fears that the changes announced in the Budget last week will lead to the closure of some ‘significant high street businesses’ next year.

Chancellor Rachel Reeves outlined the plans for the Budget last Wednesday (October 30).

For businesses, National Insurance (NI) on employers will rise by 1.2 per cent to 15 per cent from April 2025.

The level at which employers start paying NI on each employee’s salary will also be reduced from £9,100 per year to £5,000.

Ms Reeves also said the lower rate of Capital Gains Tax will rise from 10 per cent to 18 per cent, and the higher rate from 20 per cent to 24 per cent.

Mr Martin said: “This budget has been like an atom bomb dropped on small businesses in Bexhill.

“Not since Covid have we had so many calls from concerned business owners in almost tears of desperation trying to work what best to do, and it's not just retail and hospitality that has been hit hard with increases in National Insurance contributions and the minimum wage, as a leading local light manufacturing company will have to lay off several workers to retain about 20 high quality technology jobs.

“I have no doubt that when these changes start to hit in the New Year we will see some significant high street businesses close.

“Bexhill relies on the investment of local entrepreneurs and quite frankly they have had enough, many are seeing this as the push they need to take retirement and abandon our town all together.”

In neighbouring Hastings, John Bownas, manager of Love Hastings Ltd, which represents the town’s business community, said the Budget will mean that ‘every shop, pub, and café’ in the town ‘will have to find thousands of pounds extra next year to pay rates demands’.