In my previous column, with Christmas in full swing, I urged readers to ‘shop local’, recognising that “our businesses are under a lot of pressure”. I must admit, I had not expected that pressure to intensify quite so quickly since then.
As it is, the surge in the UK’s cost of borrowing in recent days has been alarming. This has already led to some mortgage lenders raising rates – and that means less money in the pockets of consumers, whilst the credit cost for businesses is also likely to increase. I have had many concerns about Labour’s approach to economic affairs, but I did not expect us to be quite so quickly at the stage where the Prime Minister is being asked if he has confidence in the Chancellor of the Exchequer.
I ran my own SME through the worst of the 2008 credit crunch. We were closely involved with the housing sector and only survived by the skin of our teeth. Of course, markets fluctuate and what goes up can come back down, or vice versa. I hope we are a long way from that kind of deep recession.
Nevertheless, what is irrefutable is that we badly need an injection of confidence into the country’s commercial soul. I have always been a ‘half glass full’ person by nature, and I’m sure that our local entrepreneurs will do everything possible to achieve their goals. But it’s fair to say that the Government could be doing more to make their life easier.
I am now being contacted all the time by businesses and non-profit organisations struggling to see how they will afford the huge increase in Employers’ National Insurance that will apply from April. In my December column, I wrote about Suffolk Community Foundation and Bildeston GP surgery raising the matter of new tax costs with me. Last Friday, I visited 1 Oak Care in Acton, delivering domiciliary care across the Sudbury area.
Their inspiring founder, Angel, explained that Labour’s new taxes will cost about £2,000 per carer. We are talking about a small business. That kind of cost cannot easily be recouped, and must ultimately lead to higher costs of care somewhere along the line – and this is delivered to some of the most vulnerable people in our locale.
Linked to this, we have the long-running issue of getting people off benefits and into work – this has been one of my great passions in politics, and is why I hold annual jobs’ fairs. Unfortunately, since the pandemic we’ve seen a big spike in people claiming Disability benefit and leaving the workforce.
However, the types of jobs it would be easiest to get people into - directly from claiming benefits - are probably those most at risk of being culled if employer taxes and other costs become too much of a burden. Pubs and hospitality are a particular concern.
What to do about this? First and foremost, as the local MP, I am constantly engaging with local businesses but also trade bodies such as the Chamber of Commerce. Furthermore, I’ve had long-running campaigns that should strengthen our local economy, indirectly or otherwise: from a new school building for Ormiston Academy, to boosting awareness of East Anglian wine producers, to promoting local tourism and, of course, standing up for South Suffolk farmers.
Our local economy has many strengths – whatever happens to tax levels, consumers are still going to want to eat out and socialise. The question is whether we can make the case for visiting South Suffolk. With our countryside and glorious architectural heritage, we have a pretty strong sales pitch.
Last week, I had the pleasure to celebrate with the Peacock Pub in Chelsworth, proud recipients of a listing in the Michelin Guide. This is the kind of historic hostelry that surely embodies the merit in getting a train or driving to our neck of the woods to relax and unwind.
Then there are local businesses like Breakout in Long Melford, who do the critical but underrated work of mentoring and supporting other SMEs. Business services is actually a huge part of the economy, and I was pleased to hear of such a positive local case study, helping other local firms with payroll and website design.
On the manufacturing side, export is crucial, and my next business visit will be to a local company that is celebrating sales success across the world, from Australia to Ukraine to South America. We still have plenty of great local businesses. Whatever national Government policy, I will do my best to support them.
Published in the Suffolk Free Press.
