THE Chancellor's Budget announcement has received mixed reactions from business leaders and organisations in Cumbria.
Chancellor of the Exchequer Rachel Reeves introduced a wide range of measures as she delivered her Budget to the House of Commons.
Among the plans announced was a commitment to maintaining the pension triple lock, a rise in education spending, more money spent on the NHS and an increase in the national minimum and living wages.
A spokesperson for North Cumbria Integrated Care said: "We welcome additional investment in the NHS and we look forward to seeing the detail that sits behind the headline figures."
Julie Minns, MP for Carlisle, said: "The first Labour Budget in fourteen years was a step towards fixing the broken foundations of our economy.
"Yet again, Labour is having to clean up the mess left by the Conservatives - but this Budget has put us on a strong footing to deliver a stable and prosperous economy which is attractive for business and investors.
"We are making the tough but correct choices – more money in the pockets of working people, more support for carers, and more investment where it matters – in health, education and transport."
However, business leaders have expressed their concerns about the 'extremely disappointing' Budget and the impact they say it will have on Cumbrian businesses.
Some of the announcements have not been welcomed by local businesses who feel disappointed and concerned with the decisions taken by the government which they believe 'punishes' UK businesses.
Nicky Gordon, managing director of Genesis Homes, said: "Today is a really challenging day for UK business owners as the Budget only compounds the misery of what has been a difficult trading period stretching back to the outbreak of Covid-19.
"It is a deeply worrying time for private business and enterprise as businesses are being punished with increased costs through taxation, and businesses like ours will feel the additional effects of increases to stamp duty rates for second homeowners.
"This Budget is extremely disappointing and only causes more concern among UK businesses. We had all hoped for more stimulus-based Budget announcements after promises of positive change, but instead we are being punished."
The budget outlined that from April 2025 employer National Insurance contributions will rise by 1.2 per cent to 15 per cent whilst the threshold at which they start contributing will fall from £9,100 per year to £5,000.
Ms Reeves said this would help to raise the money required to increase funding for, and to repair, public services.
Ms Reeves went on to say that the government will be increasing the Employment Allowance from £5,000 to £10,500 whilst also removing the £100,000 threshold, which means hundreds of thousands of businesses will pay no National Insurance contributions next year.
Combined with the rise in both the national minimum wage and the national living wage, there are fears that businesses will experience a 'significant financial squeeze'.
"We cannot overstate the impact this will have on small businesses,” said Graham Lamont, Chief Executive at Lamont Pridmore.
"With only six months to mitigate these rising costs, many businesses will have no choice but to reduce their staffing levels or make cuts to investment in other areas.
"Sectors which rely on flexible staff, often on hourly pay, will be hit the hardest – and many of these have already been impacted disproportionately by the rising cost of living and the pandemic, including hospitality, retail and leisure businesses."
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