Member of Parliament for Bognor Regis and Littlehampton, Alison Griffiths, spoke out in a House of Commons debate on the Finance Bill to challenge the Chancellor's assessment of the Budget.
Speaking in the debate, Alison explained that re-energising our high streets has been one of her key priorities, but Labour's Budget pushes us further from that goal. She made the case for supporting our high streets, charities, and family businesses to get the support they need, and urged the Government to rethink its approach and take steps to mitigate the impact on our communities.
During the debate, Alison highlighted examples she'd heard from local businesses, including Temple Spa and Meridian Medical. These businesses are gravely concerned. The entrepreneurs behind them take immense personal and financial risks to create jobs and support our economy, yet this Government treats them as an endless revenue source instead of engines for growth.
Alison wants to hear from businesses across Bognor Regis and Littlehampton about what the Budget means for them. If you have a story you'd like to share with her, please complete the form below.
In the Commons, Alison Griffiths MP said,
"The measures in the Bill are in addition to others announced as part of a Budget that has caused serious concern for businesses in Bognor Regis and Littlehampton. Re-energising our high streets has been one of my key priorities, but the Budget pushes us further from that goal.
"The Government plan to increase employers’ national insurance contributions from 13.8% to 15% and to lower the threshold from £9,100 to £5,000. That will force businesses to pay more sooner. Meanwhile, business rates relief for retail and hospitality will drop from 75% to 40%. Research shows that that will cause a 140% increase in rates, with the average UK restaurant seeing costs rise from £5,051 to £12,122, a £7,000 hike that could force closures. Those changes come on top of existing pressures caused by covid, the war in Ukraine and energy price inflation.
"A local business has shared the impact of that on its profit and loss: its freight costs are up 126% since 2019, raw materials are rising by 6%, warehouse rents were up 24% last year, with another 6% rise in 2024, and utility costs were up 58% in 2023. Businesses already stretched thin cannot absorb the additional costs that the Budget imposes. Piling on national insurance contributions and higher business rates alongside steep minimum wage hikes, without supporting productivity and growth, is a recipe for disaster.
"For towns such as Bognor Regis and Littlehampton where businesses already operate on razor-thin margins, these measures could be existential. Highly regarded local employers, including family-run small and medium-sized enterprises such as Temple Spa and Meridian Medical, are gravely concerned. Entrepreneurs like those take immense personal and financial risks to create jobs and support our economy, yet this Government treat them as an endless revenue source instead of engines for growth. The Chancellor’s projections may work on paper, but they are disconnected from reality. Our high streets, SMEs and family businesses need support, not policies that make survival—let alone growth—harder. I urge the Government to rethink their approach or take steps to mitigate the impact on our communities."
