While many businesspeople had sympathy with the economic situation the government inherited, almost all warned that this is not the answer. Chancellor Rachel Reeves confirmed in her Budget that the rate employers pay in National Insurance contributions will rise to 15 per cent on a worker’s earnings above £175. In addition, the threshold when employers start paying the tax will be reduced from £9,100 per annum to £5,000.
Tony Vico, owner of Watford's Home Improvement Centre, which has around 50 staff, called it a “tax on employed people”. Speaking from his Market Street base, the 59-year-old said: “The threshold change is costing us £615 a year per employee as a new tax and that’s without what they’re adding on the top.” A Watford local, Tony continued: “I think the government hasn’t got a clue what it’s doing.
“What they should be doing is taxing people like me more. Anyone paying more than 40% tax, over that threshold, put another two pence on the pound for people earning that much. “Don’t hurt businesses because then you’re stopping them growing and you’re stopping them investing.
” John Cao, the 54-year-old owner of Ocean Bells Coffee, was also critical: “It is going to be very hard. Costs are increasing a lot.” The coffee shop in the town centre employs eight people.
Cao said that he was looking to hire more staff but since the Budget has put those plans on ice. He said: “Normal people are going to pay the price, it is punishing t.
