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Small business owners in South Yorkshire told This Is Money that higher employment costs and proposed workers’ rights changes are making recruitment harder ahead of the Budget. The Barnsley and Rotherham Chamber is calling for relief on National Insurance for under-25s, energy costs and business rates, while its survey found improving expectations among some member firms.
Small business owners in John Healey’s South Yorkshire constituency say employment costs are deterring hiring, as they call for Budget measures to support recruitment and investment. Their concerns include recent increases in National Insurance contributions and the minimum wage, while the Barnsley and Rotherham Chamber is seeking targeted relief for employers and lower business costs.
Tony Airey, who has run Wentworth Garden Centre with his family for 40 years, told This Is Money that the business cut staff rather than take on extra workers last Christmas, following rises in employer National Insurance contributions and the national minimum wage. The centre has 15 full-time employees, alongside part-time and seasonal staff. Airey said further minimum-wage increases could become unsustainable for the business.
Airey also criticised proposed changes in the Workers’ Rights Bill, particularly a right to sick pay from the first day of illness regardless of hours worked. He told the publication that these measures could discourage employers from hiring, especially younger people. The account reflects his assessment; the report does not provide a separate estimate of the bill’s effect on employment.
The Barnsley and Rotherham Chamber has called for direct action on National Insurance for workers under 25, citing youth unemployment, and for targeted tax reductions to ease energy and business-rate pressures. Chief executive Carrie Sudbury said those measures would give businesses more room to hire and invest. The Chamber’s latest member survey found 57 per cent expected turnover to rise over the next year and 51 per cent expected profitability to improve, up from 34 per cent in the previous quarter.
Hiring Costs Shape Local Growth
The concerns matter because recruitment costs affect whether small firms can add staff, extend opening hours or grow. For businesses operating on tight margins, higher wages, employer contributions, energy bills and rates can influence hiring decisions. Airey’s account of cutting seasonal staffing illustrates the practical issue raised by the owners, although it does not establish how widespread that response is across the area.
There are also signs of improved confidence. The Chamber’s survey suggests more member firms expect turnover and profitability to rise than in the previous quarter. Sudbury said employers are prepared to consider expansion but want government action to sustain that outlook. The figures are members’ expectations, not confirmed future results, and the report gives no sample size or survey methodology.
For younger jobseekers, the Chamber’s call for lower National Insurance costs on under-25s is tied directly to its concern about youth unemployment. The source provides no local unemployment figures or evidence that a particular tax change would produce a specific number of jobs. The Budget’s response, if any, will show whether the government chooses to address the pressures business owners have identified.
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Different Views Across Healey’s Seat
The source report describes a mixed picture in Healey’s constituency, which includes Rawmarsh and Conisbrough and has a population of about 90,000 people. Airey previously wrote to Healey after Rachel Reeves’s last Budget, arguing that it offered little stimulus for small businesses and saying taxes were discouraging recruitment and investment. These are Airey’s criticisms, not an independent assessment of the Budget’s effects.
In Rawmarsh, Chantry Brewery owner Mick Warburton expressed more hope that Healey and regional mayor Andy Burnham want to support hospitality. Founded in 2012 by Warburton, his brother Kevin and former bank worker Sean Page, Chantry employs 35 people across its brewery, bar and three pubs. Warburton credited small brewers’ relief, which he said cut beer duty by 50 per cent for qualifying small brewers, with helping the business start. He also said pubs face difficulty because customers have less money to spend.
Healey has promoted a 20 per cent cut to business rates for pubs, clubs and music venues, according to the report. In Conisbrough, Reform councillor Rachel Reed said local businesses face high energy costs, employment costs and rates, and called for better transport links to help people travel to work. The different accounts show that business owners see both existing support and continuing cost pressures, rather than a single shared view of government policy.
“These mitigate against employers taking on more staff, particularly youngsters.”
— Tony Airey, owner of Wentworth Garden Centre, speaking to This Is Money
Budget Measures Remain Unknown
The report is written ahead of Wednesday’s Budget, so it does not establish whether the government will adopt the Chamber’s proposals or announce other measures for small businesses. It also provides no detailed local employment data, no survey sample size and no evidence that the business owners’ experiences represent all firms in Healey’s constituency.
The employment effect of the Workers’ Rights Bill and future wage changes is also not quantified in the source. Airey’s warning that further increases could be unsustainable is his view; the report does not include government or independent analysis of the likely costs, nor a response from the government to the specific criticisms.
Budget Decisions Will Test Confidence
The immediate next development is the Wednesday Budget. Any announcements on employer National Insurance, minimum wages, sick pay, business rates or energy costs will indicate whether the government intends to respond to the pressures raised by the local owners and the Chamber. The source does not confirm that any specific measure is planned.
Businesses and the Chamber will be watching for details and assessing how announced policies apply to their costs and hiring plans. The Chamber’s survey points to better expectations among members than in the previous quarter, but whether that confidence leads to actual investment or additional jobs remains to be seen.
Key Questions
What are South Yorkshire small business owners asking for?
The Barnsley and Rotherham Chamber is calling for lower National Insurance costs for workers under 25 and targeted tax relief to ease energy and business-rate pressures. Individual owners also raised employment costs and the proposed workers’ rights changes.
Why does Tony Airey say hiring has become harder?
Airey told This Is Money that rises in employer National Insurance contributions and the minimum wage preceded a decision to cut staff rather than hire extra workers for last Christmas. He also said proposed day-one sick pay rules could discourage recruitment. These are his account and assessment.
What did the Chamber’s survey find?
The latest member survey reported that 57 per cent expected turnover to rise over the next year and 51 per cent anticipated improved profitability. The profitability figure was up from 34 per cent in the previous quarter. The report does not state the survey’s sample size or methodology.
Has the government agreed to the requested measures?
The source report does not say that the government has agreed to the Chamber’s proposals. It was published ahead of the Budget, and the specific policy response remained unknown at that point.
Source: rss
