{"id":20385,"date":"2024-11-13T15:39:18","date_gmt":"2024-11-13T15:39:18","guid":{"rendered":"https:\/\/satellite.mmu.ac.uk\/northernquota-old\/?p=20385"},"modified":"2024-11-13T15:39:19","modified_gmt":"2024-11-13T15:39:19","slug":"manchester-businesses-brace-for-impact-of-rachel-reeves-new-budget","status":"publish","type":"post","link":"https:\/\/satellite.mmu.ac.uk\/northernquota-old\/manchester-businesses-brace-for-impact-of-rachel-reeves-new-budget\/","title":{"rendered":"Manchester businesses brace for impact of Rachel Reeves’ new budget"},"content":{"rendered":"\n
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Image: House of Commons\/UK Parliament\/PA Wire<\/p>\n\n\n\n

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Business owners in Manchester are bracing themselves for new economic challenges as they await the rollout of Rachel Reeves’s ambitious budget<\/a>.<\/p>\n\n\n\n

As laid out in the Chancellor\u2019s statement to the House of Commons, employers and businesses will, from April 2025, be expected to pay an increased national insurance tax.<\/p>\n\n\n\n

The 1.2% increase is intended to fill a \u00a321.9 billion black hole within the public finances, an issue the current government and Office for Budget Responsibility say was left by the previous Conservative government.<\/p>\n\n\n\n

Public funding<\/h2>\n\n\n\n

The budget is set to increase public funding, renewable technologies and is predicted to show a 2% GDP growth by 2025<\/a>, which could lead to more business investment. It has been criticised by shadow Chancellor Jeremy Hunt as \u201ctaking the easy route\u201d.<\/p>\n\n\n\n

He told Good Morning Britain: \u201cThe result of these rises in taxation will be lower growth, lower living standards, and it\u2019s ordinary families that bear the brunt.\u201d<\/p>\n\n\n\n

Will, the owner of Gourmet Coffee Bar & Kitchen<\/a> near Oxford Road station, said that \u201cfrom a business point of view, the increase of the employer\u2019s national insurance for a relatively small business with tight budgets, it\u2019s going to be difficult.\u201d<\/p>\n\n\n\n

When asked how it\u2019s going to affect the business\u2019 budget, he responded: \u201cIt\u2019s going to have an impact. I\u2019m under a lot of pressure from my bosses to get the costs under control.\u201d<\/p>\n\n\n\n

Leo, founder of Monsieur French Tacos on Oxford Road, said: \u201cI think these changes will not affect us right now \u2013 but probably in the long run. As of now, I think we\u2019ll be fine.\u201d<\/p>\n\n\n\n

He added \u201cIt\u2019s being introduced at a bad time in our economy. It\u2019s in a state of recession.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"

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