Beacon Post
A promise to shield households from some cost of living pressures was the focus of John Healey's first budget as chancellor. He described his plans as offering families "breathing space", with measures including support for some households facing rising energy costs and changes to business rates. But reaction across Shropshire was mixed, with businesses, charities and politicians divided over whether the measures will go far enough.
Harry Delves, who runs Tuffins Supermarket in Craven Arms, said there was little in the announcement that would significantly affect his business. He said: "We all knew about the national living wage that was going to be increasing from April, so that's something that we just need to build into our forecast for the following year." While he welcomed the extension of the 5p fuel duty cut, Delves said he did not see "any big announcements or major changes" that would "supercharge the UK economy. "In all, it's quite uneventful.
We shall see how everything starts to turn out." Scott Adams, owner of Telford Exotic Zoo, described the Budget as "underwhelming" and said there was "really nothing in there" that would directly help visitor attractions. Instead, he hoped any extra money in consumers' pockets could encourage more spending on leisure activities. "If people feel maybe like they've got a little bit more money in their pocket, then maybe they'd be more willing to go out and spend money on luxuries, like going for days out," he said.
Adams said businesses continued to struggle with rising costs. "Our electric costs have gone out of control. Animal feeds, anything that we're buying in since the pandemic, there's just been one excuse after another to double the price.
"Instead of enjoying running a business, it seems like you're always fighting. You're always fighting to make enough money to buy everything that you need." He added: "There's not really any help or support out there at all at the moment." Callum Jinks, financial controller at Joule's Brewery in Market Drayton, welcomed support on business rates but argued the measures did not go far enough for pubs and breweries. He said: "The main things in there for us were the supports on the business rates, which does touch some of our sites and our tenants and will support them.
"But I don't think it goes anywhere near far enough to what the wider pub industry does need at the moment." Jinks said there was a "big push" within hospitality for a review of VAT and further relief on alcohol duty. He also criticised the current business rates system, arguing successful pubs could effectively be penalised. "If you get a good operator and a pub that improves the business and makes that pub very successful in the local area, its business rates are then unfairly affected by increasing dramatically," he said.
He warned that despite some positives, more pub closures could lie ahead. "I think in general we're going to see more pubs closing before anything does get better." Mark Triggs, from debt charity Christians Against Poverty, said some of the headline announcements were welcome but questioned how much difference they would make as costs continue to rise. He said: "The food tariffs, they reckon, will save an average household only £20 a year.
So it's welcome, but it's a lot of little bits here and there with costs still running riot." Triggs said energy costs remained one of the biggest concerns, particularly in Shropshire where many households are not connected to the gas grid. "I think energy is the issue that most troubles in terms of what we'll see with people coming forward in the coming weeks." He said more people were seeking help because they could not afford essentials. "I see more and more people because they can't put food on the table and are looking for referrals to food banks." Despite his concerns, Triggs said the chancellor had faced an "impossible sort of task".
"The proof will be in the pudding as time proceeds, but I think people won't feel that they're any better off than they were." Responding to the criticism, Labour MP for Shrewsbury Julia Buckley described the Budget as "really positive". She said: "You have to remember there's lots of uncertainty internationally. Our job really is to try and stabilise things and reduce some of our immediate costs to help people with this really difficult situation." Buckley said changes to business rates would mean many smaller firms no longer paid the charge, and pointed to investment through the National Wealth Fund and Good Growth Fund.
She also highlighted measures aimed at reducing household costs, including support for households in council tax bands A to D. "Our big project as a Labour government is to get people onto renewable energy because it's the cheapest form of energy," she said. Liberal Democrat MP for North Shropshire Helen Morgan welcomed support on business rates and help for households, but argued the budget did not go far enough.
"Overall I think it was a timid budget," she said. Morgan said rural communities needed greater support with heating oil and Liquefied Petroleum Gas costs. "We need to help people to heat their homes over the winter because the prices are really astronomical at the moment." She also backed calls for a temporary reduction in VAT for hospitality businesses and warned rural areas risked missing out on investment.
"At the moment, it looks like places that are rural are missing out in a significant way," she added.
Source: BBC
