Bognor Regis and Littlehampton MP's 'grave concerns' for budget

Announced last week by Chancellor Rachel Reeves, the new budget is Labour’s first in 14 years and laid out plans to increase spending on the NHS, defence and public transport, funded by tax hikes worth some £40 billion.

But the plans have some pundits and politicians worried, including Bognor Regis and Littlehampton MP Alison Griffiths, who won her seat in the summer election.

"I sincerely hope that the Government rethinks its approach or mitigates the impact this will have on both employers and employees in Bognor Regis and Littlehampton,” she told Sussex World, adding that the new budget runs counter to her plans to re-energise the high street.

She added that the government’s plan to increase employer’s National Insurance Contributions to 15 per cent, while reducing the threshold under which they do so from £9,100 to £5,000, means businesses will be paying more money to the government for hiring staff – and will need to do so sooner.

She also said the increased minimum wage – especially for 16-21 year olds, whose paycheques will see a 16 per cent increase – will lead to an increase in staffing costs for employers, a disincentive for businesses who might have otherwise hired school leavers.

Mrs Griffiths also disagrees with plans to reduce business relief rates from 75 per cent to 40 per cent – a decision which will push the average businesses’ rates up from £5,051 to £12,122, although the Labour government has promised to consult on a fairer business rate system in 2026.

“More costs, without delivering increased productivity and growth, could jeopardise jobs. Many businesses are already operating on very tight margins, with few remaining opportunities to offset these costs. Very few employers in Bognor Regis and Littlehampton will be able to absorb these new costs without having to take cost cutting measures or put up their prices,” she said.

"I know many of us are worried about the number of empty shops in Bognor Regis and Littlehampton town centres. The combination of these costs on businesses could present an existential threat to businesses and SMEs in Bognor Regis and Littlehampton.”