New Budget a step in the right direction for butchers
The new Summer Budget, revealed yesterday by Chancellor George Osborne, has largely been welcomed by independent butchers.
Jim Sutcliffe, from Meridian Meats in Lincolnshire, said the announcement “ticked most of the boxes”.
“There was a little bit of everything for everyone, which was quite nice. I was pleased that they had a look at corporation tax and about the incentives they had with national insurance for smaller businesses such as ourselves.”
Corporation tax, which companies pay on their profitable tax, will drop from 20% to 18%, while the national insurance employment allowance for small businesses is to be increased by 50% from £1,000 to £3,000.
“As an independent small business, we’re definitely feeling a recovery,” said Sutcliffe. “Everything went very tense before the general election and we noticed a lot of our trade – whether it was mail order, wholesale or retail – tightening right up. Afterwards, not six or eight weeks in, it’s slacking off again really nicely, like it was a few months before the general election. We can really feel an economic recovery.”
Chris Godfrey, of London based Godfreys.co, also welcomed the budget: “Any let-up on the corporation tax is welcome.
“I would say it’s probably in favour of small businesses in the long run. It’s in favour of everyone earning a decent wage.”
Godfrey believes an increase in the minimum wage will motivate more people to find work: “It’s a case of getting people back to work and making them feel they have a stake in society, which is the most important thing.”
Although he agrees that “generally speaking, it seemed a fairly good budget”, butcher Brindon Addy of West Yorkshire, had some reservations when it came to the [rise in] the cost of the living [wage].
“The big impact will be the minimum wage to us,” he said. “I reckon it’s probably going to cost us £30,000 a year.”
As of 1 April 2016, the National Living Wage will increase to £7.20. This will increase further in 2020 to £9, for those aged 25 and over.
“I’m not saying there shouldn’t be a working wage, I just think that, probably, it’s a little bit too high.”
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