Chorley pie seller says Budget offers no relief from rising costs
Paul Bowen, a pie seller with two shops in Chorley, criticised the Budget, saying its promised “breathing space” would not reach his business. He said he does not qualify for business rates relief and faces higher wage and supplier costs, adding to pressure from energy bills and employer National Insurance.
Bowen estimated the minimum wage rise would add £700 a week to his costs, while he expects suppliers to pass on a 10 per cent increase, worth £2,000 to £3,000 weekly. He said the combined extra costs could reach £4,000 a week, forcing him to raise prices and cut his own family’s income; the Government says 70,000 smaller high street businesses will be removed from business rates.
In short
- Paul Bowen says Budget relief excludes his two pie shops.
- He estimates new weekly costs could reach £4,000.
- He may raise prices and take a family pay cut.
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The case for
Bowen’s account illustrates how a business can face substantial combined increases in wages, supplier prices, energy bills and employer National Insurance, even if the Budget offers relief to some firms. If his estimates are borne out, passing costs on to customers or reducing his family’s income may be difficult to avoid, and the policy may leave businesses like his with little of the promised breathing space.
The case against
The Government can argue that removing business rates for 70,000 smaller high street businesses provides targeted support, while higher minimum wages raise workers’ incomes. One business owner’s forecast does not establish the overall effect of the Budget, and wage and supplier cost pressures may have several causes; the relevant assessment is whether the package helps businesses and workers overall, including those Bowen says are not eligible for rates relief.
Explained simply
The Budget is the Government’s plan for taxes and public spending, and can affect how much businesses pay and the help they receive. Business rates are a tax on shops and other business premises; some smaller businesses qualify for relief, which reduces or removes that bill.
Paul Bowen runs two pie shops in Chorley, a town in Lancashire. Like other shop owners, he faces costs such as staff wages, energy and supplies, while the Government says 70,000 smaller high street businesses will be taken out of business rates.
These costs matter because they can affect what shops charge and how much money remains for owners and staff. When costs rise, businesses may respond by raising prices, reducing spending elsewhere or changing how they operate.
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Originally published by Daily Mail as “‘Where’s MY breathing space?’ Northern pie seller who backed Burnham gives brutal verdict on Budget – as he misses out on business rates help and is battered by Labour’s tax on jobs”.