Source link : https://london-news.net/headline-londons-businesses-brace-for-budget-impact-rising-wages-and-rates-spark-concerns-of-economic-viability/
Businesses throughout London are responding to the initiatives laid out by Chancellor Rachel Reeves in the Budget presented on Wednesday.
One of the major highlights is the announcement that the lowest-paid employees will see an increase in wages starting in April. Specifically, workers aged 18 to 20 will benefit from a minimum wage increase of 85p, bringing it to £10.85, while those over 21 will experience an increase of 50p to £12.71.
Companies operating in properties valued over £500,000 will face increased business rates, a significant concern for enterprises in the West End.
Ros Morgan, Chief Executive of Heart of London Business Alliance, remarked, “The stark reality is that businesses have been severely impacted, and with the wage hike, the National Insurance (NI) rise, and now the increase in business rates, it’s a trifecta of challenges.”
She went on to say, “There must be a breaking point, and this may very well be it. It’s important to clarify that businesses do want to pay fair wages.”
“In my discussions with various businesses and the members I represent, the overarching sentiment is a desire to attract talented individuals and a willingness to offer competitive pay. However, if they simultaneously have to contend with these exorbitant business rates, then compromises will need to be made.”
“My concern is that they may slow down recruitment even more than they did after the introduction of the National Insurance increase.”
Mouna…
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Publish date : 2025-11-28 09:04:00
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