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Independent retailers are urging the chancellor to support small businesses ahead of this year's Budget – and some of them say their futures depend on whether they will be able to deal with increasing costs. "The overheads have crippled us – especially VAT, business rates and everything else that goes with it," says Sue Westerman, who owns Lincolnshire Flapjack in the North Lincolnshire town of Brigg. It's a similar story on the other side of the Humber.
Sally Walker, whose business, Bright Ideas, is based in Market Weighton, East Yorkshire, says: "We're a retail High Street business, and I think [the chancellor] really needs to make sure that these big [online] companies are paying their fair share because it's not an even playing field." The government says it is aware of cost pressures facing some businesses, and a Treasury spokesperson says: "We're making the business environment work better through our £4.3bn business rates support package, Small Business Plan and action on late payments." Westerman says she and her husband opened their cafe 10 months ago in Brigg's Market Place but due to rising costs they have had to let four members of staff go over the summer. "You come to work and you think, 'If you just take £100, then £20 of that will be taken for VAT', so on a quiet day it's not even worth opening. "So you reduce your hours, you reduce your staff, then you lose your customers.
It's just a never-ending battle." A short walk away from Lincolnshire Flapjack is House of Stoves, which Ellisa Shearman has run with her husband for six years. "I run quite a tight ship financially, but bills that are going up are business rates, rent, heating bills – everything's going up," she says. "And so we have to factor that in with our prices.
"I find that difficult because we're in a position where customers don't really have money, either, because they're [seeing] the same impact at home." She adds: "As a country, we don't celebrate people who strive for more. Is this next generation going to think if [they] start a business and put everything into it, [they're] just going to be penalised?" Pastimes is an arts and crafts shop owned by Ian Cuttell, who says fuel costs are a real concern. "You have to think twice about using the gas and electricity, but customers want a well-lit, warm environment to do their shopping in," he says.
"And of course there's always an extra tax for something, water rates go up, energy costs go up. It's hard – you do well to keep open, really." Up in Market Weighton, Giant Bradley's Sweet Shop is named after "Yorkshire Giant" William Bradley, one of the world's tallest men. Jacqueline Swallow, who owns the shop with her husband, says: "The online side of our business represents probably the biggest portion of our business.
"High Street shops across the country [are finding] it increasingly difficult with sales, so the online side helps us get through the tougher times." She adds: "In terms of the Budget, it would be lovely to see how the government can support us as a small business in terms of employment – things like grants so that we can then support people who work for us, such as [with] training. "We employ people who live locally, so it all goes back into the community." Gav Powell, who owns Newport Computers, echoes the call for support with training. "If there were something on training rather than just reducing the cost of apprentices, that would make a big difference," he says.
"It would be nice to be able to improve our actual offering and add to our own skills without necessarily having to go elsewhere." Walker, of Bright Ideas, employs three people who live locally, and she is another one calling on the chancellor to do more to help with staffing costs as well as looking at making larger businesses pay "their fair share". Katrina Pierce, of the Federation of Small Businesses, says: "We need to give businesses room to grow, in terms of turnover, in terms of staff, without them having the fear factor bearing over them... Give them that little bit of breathing space and we think that would really have some benefits." A Treasury spokesperson says: "We are on the side of businesses.
The chancellor is giving the High Street more breathing space, cutting business rates by 20% for pubs, social clubs and live music venues. "This is alongside £4.3bn to limit bill rises, funded by a higher tax rate for big online warehouses, and capping corporation tax." Listen to highlights from Hull and East Yorkshire or Lincolnshire on BBC Sounds, and watch the latest episode of Look North .
Source: BBC
