Hastings business leader says 'every shop, pub, and café will have to find thousands of pounds extra next year' as a result of Budget

Chancellor Rachel Reeves outlined the plans for the Budget on 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.

John Bownas, manager of Love Hastings Ltd, said: “Although there is an offer of an overhaul of business rates planned for 2026, in the meantime every shop, pub, and café will have to find thousands of pounds extra next year to pay rates demands.

“And this is on top of increased wages bills - although these will be offset by reductions in employer contributions for smaller businesses.

“This budget was always going to be a watershed moment as getting public finances in order had to be at the top of this new Government’s priority list. What’s certain is that none of these decisions will have been made lightly. What’s less certain is whether time and history will judge them to have been the right ones.

“Certainly the people who have genuine insight into the retail and hospitality industries are sounding alarm bells in the short term at least.

“If increased public spending and more cash in the pockets of lower-paid employees translates into more activity on the high street there could be some light at the end of what feels like a very long tunnel. But what we all hope is it's not the headlights of a very fast train coming in our direction.”

Hastings and Rye MP, Helena Dollimore, said: “In July our country voted resoundingly for change. This Budget starts to deliver that change by investing to rebuild our broken public services and fixing the foundations of our country.

“We’re delivering on priorities - repairing the NHS, investing in schools, and making sure those with the broadest shoulders contribute the most.

“We have kept our promise to ensure working people won’t face higher taxes in their payslip, with no increase in National Insurance for employees, and no rise in Income Tax or VAT.

“The national living wage will rise to £12.21, a pay rise for low-paid workers across Hastings and Rye. We’re freezing fuel duty and renewing the bus fare cap at £3, protecting the many people in our community who rely on buses from a sharp hike in bus fares.

“We desperately need more affordable homes here, so I’m pleased the Budget includes extra funding to build new affordable and social homes. We all know that our area has the worst potholes in the country, so the extra £500 million to repair our roads after years of neglect is really welcome.”