Wyre Forest MP Mark Garnier on government tax changes

From April 6 we shall see a whole new raft of taxes.

We’ve already seen what the changes can do.

In Kidderminster, Bistrot Pierre has closed and in its email to customers sited the hikes in employers’ National Insurance as the main reason. 

But there has also been the reduction of business rates concessions from 70 to 40 per cent that has also hit the hospitality sector. 

Across not just Kidderminster and Wyre Forest, the whole country is facing an economic nightmare as the new government hikes taxes on the productive part of the economy.

Bistrot Pierre is a chain and not all its branches will close.

But there are a whole host of small businesses across Wyre Forest that will have to decide what cuts they will need to make to pay for Chancellor Rachel Reeves’ attack on enterprise. 

And, as a neighbouring business to Bistrot Pierre pointed out, the loss of one venue on a small hospitality strip in the centre of Kidderminster reduces the footfall to other hospitality offerings. 

Having seen around £40 million of investment into Kidderminster town centre from the previous government — the magistrates’ court, the town hall, the Piano Building and the new park as well as other measures — the chancellor’s thoughtless tax hikes can reverse the progress for our vibrant town centre.

The problem is this is not the only issue.

Also coming is a hike in the minimum living wage. 

In itself not unreasonable but, coming at the same time as employers’ NICs hikes and the new Workers’ Employment Rights Bill currently making its way through parliament, small businesses are being hit three ways.

This is all concerning but everyone loses. 

We have seen a generation of school kids suffer because of the Covid lockdowns.

But, as they now leave school, they face a depressing jobs market because employers cannot afford the triple whammy of higher employment taxes, higher minimum wages and reduced ability to move on staff that, for one reason or another, are not working out as employees.

This is bad news for us all. 

Business leaders are entrepreneurial but they take a load of risks at their own expense and out of that they create jobs, opportunities, desired product and a richer society. 

Thoughtless raids on their margins and poorly thought-through employment rules slash the part of the economy that pays for all our valued public services.