""It was a kick in the teeth," says Katya Milavic-Davies, who owns four Myla and Davis hair salons, as well as the restaurant Llewelyn's and the cafe Lulus, both in Herne Hill in south London. She says she had to increase her turnover across her four salons by 500,000 to cover the costs of the National Insurance contribution (NICs) hikes, and a national minimum wage rise, adding that businesses like hers had been "punished" for having a large number of employees."
""We've obviously had to pass on those costs and try and put up our prices as much as we can" but "there is a ceiling and... we're seeing the strain." New figures from the Federation of Small Businesses, which is calling on Chancellor Rachel Reeves to reduce the small business tax burden and the impact of employment cost hikes, reveal that nearly one in three small firms expect to shrink, sell up or shut down in the next 12 months."
High Street businesses face intensified financial strain from recent tax and employment cost increases. A multi-site salon operator increased turnover by £500,000 to offset National Insurance contribution hikes and a national minimum wage rise. Many firms have passed costs to customers but face price ceilings that threaten demand. Federation of Small Businesses data shows nearly one in three small firms expect to shrink, sell or close within 12 months. Novuna finds 86% of small businesses fear negative Budget impacts, and a YouGov survey cites taxation and fuel duty as top employer concerns. Hospitality and personal-care margins are razor thin and over 100,000 sector jobs have been lost since the last Budget.
Read at www.bbc.com
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