Firms 'holding back' on new jobs ahead of Budget
Some businesses say they want to see employment costs come down in the October Budget.
Firms 'holding back' on new jobs ahead of Budget
Michelle Bunker from WGP wants to see a reduction in employer's National Insurance contributions
Some businesses are urging the Budget on Wednesday to cut the cost of hiring staff.
A publisher in Tavistock, Devon, said he was "holding back" from appointing two new employees at his company because of the expense of bringing in new workers.
At the Devon Business Show, some firms said they had spent the past two years struggling with the rise in employers' National Insurance contributions introduced in 2024, while also dealing with increases in the National Minimum Wage.
Chancellor John Healey is due to deliver his first Budget on Wednesday, but he has declined to rule out tax rises after saying government borrowing costs are at "historic highs".
Tim Randell from Links Publishing wants to see a reduction in the costs of employing staff
Michelle Bunker, from WGP Maintenance in Plymouth, said she had one clear message for the chancellor: "I want to see National Insurance contributions starting to go down."
Tim Randell, who runs Links Publishing, said changes to government policy would let him hire more people.
He said: "All we've had for the last two Budgets is more tax, more expense, the living wage, and all those things mean that people like me are not employing the young.
"I have two positions that I could fill, want to fill, want to expand and grow my business, but I'm holding back because of the employment costs."
In the 2024 Budget, Rachel Reeves announced that companies would have to pay National Insurance at 15% on salaries above £5,000 from April 2025, up from 13.8% on salaries above £9,100.
The legal minimum wage for over-21s also increased from £11.44 to £12.21 per hour from April 2025.
Kevin Miller, the boss of Apex HR in Plymouth, said small businesses were "the backbone of the whole economy" and needed support.
He said: "We need to reduce the cost of employing people because we're all passionate about really wanting to build this economy and grow it - so help us out with some tax relief please..."
The cost of living crisis is hitting charities as well as businesses, according to Elsbeth Hallam from Plymouth-based Hugs Children's Cancer Charity, which supports families with children with cancer.
She said: "People are definitely being tighter on what they're spending their money on.
"For us, obviously it does have a run-on effect then on what we can raise and how many families we can support."
Pete Adams is the general manager of the Moxy Hotel in Plymouth
Tens of thousands of people work in hospitality and catering in Devon, and hotel bosses said the sector had been having a difficult time.
Workers in hospitality - led by celebrity chef Tom Kerridge - have long been campaigning for VAT on pubs and restaurants to be cut from 20% to 10%.
Melanie Williams, events manager at the Duke of Cornwall Hotel in Plymouth, said: "I think people's financial pockets are strained and any support we can be given from the government within the budget has got to benefit everybody in the industry - VAT perhaps to be revisited again."
Pete Adams, general manager at the Moxy Hotel in Plymouth, backed the call for a VAT cut for the hospitality sector.
He said: "That would allow us to pass some of those savings on to the customer.
"That will then hopefully increase more customers into our businesses and extra spending and that'll give the Treasury almost as much money as before."
The Devon Business Show was held by Devon Chamber of Commerce at the Plymouth Life Centre.
Helen Wylde-Archibald, chief executive of Devon Chamber of Commerce, said businesses in the county were "planning for a better future".
She said: "I think what we just need is that soft touch with the Budget so that businesses get the chance to grow and I think Devon will be right at the front of the pack."
The government said it was "on the side of business" and said reducing the cost of doing business was one of the chancellor's five priorities.
A spokesperson for HM Treasury said: "The chancellor is giving firms the breathing space to invest and grow, with business rates cuts, a cap on corporation tax, £4.3 billion of support to limit bill rises, and employer National Insurance contributions relief when hiring under-21s and apprentices under 25.
"As has always been the case, decisions on tax are a matter for the chancellor to set out at fiscal events, rather than routinely commenting on rumour, speculation or proposals."