Rachel Reeves tells small business owner We are trying to help

Chancellor Rachel Reeves told a shop owner the Government was “trying to help” as she visited independent retailers ahead of Small Business Saturday.

Ms Reeves toured the Leeds Corn Exchange on Friday where Deborah Bellamy, owner of Hidden Wardrobe, told her that businesses had found it “very tough” in recent years with rising costs and minimum wage increases, and had to let some staff go.

The Chancellor said: “I know it’s tough and there are a lot of costs but we are trying to help.”

She told Ms Bellamy: “I’m not sure if you’ve looked at the national insurance changes that we made in the Budget but we’ve increased the employment allowance to £10,500. So you should look to see what happens to your business because… if your national insurance bill is less than £10,500, you won’t pay any national insurance.

“We’ve tried to design it in a way that supports the smallest businesses.”

The Chancellor later told reporters her message to small businesses was to “look at some of the detail in the Budget”.

Ms Reeves said: “The smallest businesses will be paying less or no national insurance because of the changes I announced.

“I met one small business today who employs three people, and she didn’t know about those changes, but they mean for her business that she’s next year unlikely to pay any national insurance at all whereas this year she is paying national insurance.

“So the smallest businesses will benefit from those changes in the Budget because we recognise the importance of small businesses and their needs.”

She added: “In addition to those changes around national insurance, I’m also making changes to business rates.

“Under the plans that I inherited as the Chancellor in July, we would have seen a business rates relief for retail hospitality and leisure businesses disappear entirely from next April.

“I didn’t want that to happen, so we have been able to extend business rates really for a further year, and we’ve also made a commitment in the Budget to reform business rates to have permanent lower rates for smaller retail, hospitality and leisure businesses.

“That’s so important because I do recognise over the last few years, the Covid pandemic, the cost-of-living crisis, that there are challenges that are unique to smaller businesses, particularly in those sectors.”

During the visit, Ms Reeves also visited gift shop Attic In Bloom, where she bought an ornament for her desk at 11 Downing Street.

Published: 07/12/2024 by Radio NewsHub