Like many other pubs, long considered pillars of British community life, The Gunnersbury has felt the pinch of the Autumn Budget on its finances and future.
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#UK #AutumnBudget #Pubs
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00:00Pop culture has long been at the heart of British life, but now many are bracing for
00:06a challenging winter after October's budget, the first by the Labour government, which
00:11took office in July. This pop in West London, still repaying COVID-era loans, may face an
00:18additional US$3,000 in monthly costs due to rises in contributions to each employee's
00:25social security tax, known in the UK as NI or National Insurance. The owner says customers
00:32were already pulling back on spending well before the tax hikes.
00:37It's already impacted on businesses like ours and hospitality across the UK. Quite what
00:46happens going forward is difficult to discern or understand given the thresholds on the
00:54NI rising. And do you think it's going to impact your plan for hiring more people in
00:59the future? We'd like to hire two people, but it's probably more financially sensible
01:06for us to hire in as and when we need, and that company can deal with the NIC. Recent
01:13research from the Nighttime Industries Association shows the hospitality sector supports over
01:192 million jobs in the UK. 90% of businesses surveyed report financial struggles. And it
01:26is not just pops. Many companies are bracing for the budget's impact. Starting in April,
01:32the rate employers pay in National Insurance contributions will rise by about 1.2%. In
01:38the meantime, the threshold at which employers will start paying it has been lowered, which
01:43means businesses must start their National Insurance contributions from about US$6,300
01:50of an employee's earnings. The government is providing financial support for businesses
01:55through a scheme called the Employer's Allowance, but many worry this will not be enough. The
02:01UK's finance minister says the increases are necessary to fill a $50 billion black hole
02:07in public finances. If you take the measures that I set out in the budget in the round,
02:12it's good for jobs and it's good for growth. Experts say despite the tax rises, the UK
02:18remains competitive compared to other European countries for now. If we were to compare this
02:24with other countries, particularly in Europe, such as France and Belgium and Italy, the
02:30social security costs, or the NIC costs as we call them here, those are comparatively
02:35lower here. But if this continues and there's extra taxes on employers, then those advantages
02:41diminish and fall away. Richard Riff's promised not to raise the taxes again. I think a gain
02:47has to be taken with a pinch of salt. I mean, I don't know how someone so early on in the
02:54parliament can actually make those pledges. As pops and small businesses navigate these
02:59rising costs, many are uncertain if they will survive to see the rosier times the government
03:05is aiming for. Lee Jianhua, CGTN, London.