Budget Resolutions
The Chancellor’s big phrase in this Budget has been “breathing space”. It has been said time and again, but it is utterly false, because the Chancellor has not given businesses any breathing space at all. There is no breathing space <span id="672" class="column-number" data-column-number="672"></span>on employer national insurance. Labour’s job tax stays exactly where it is, punishing employers for yet another year. There is no breathing space on wages. The national living wage has actually gone up by 3.9% from April, on top of the Employment Rights Act 2025, with nothing announced to help employers meet the costs. Even the Office for Budget Responsibility warns that these policies will seriously damage job creation in this country. There has been no real breathing space on business rates. The Chancellor says that he is freezing business rates for retail, hospitality and leisure in real terms, but the British Retail Consortium has rightly pointed out that this is just “smoke and mirrors”. This is not breathing space at all. This is our businesses being stifled yet again by this Labour Government. I ask the Minister: what are their ambitions for British businesses? It seems evident from this Budget that they do not have any. They are taxing our British businesses again and again. All this matters because it is impacting my constituency, which is full of hard-working people. I think of the independent shops on Cavendish Street and Low Street fighting to keep Keighley a thriving place, as well as the cafés, boutiques and family businesses on the Grove and Brook Street in Ilkley, and those businesses right across Silsden, Steeton and Riddlesden and our wider area who are working incredibly hard. The pubs, the tradespeople, the hairdressers, the start-ups—they are all hard-working people, yet this Government think that employers in those small independent businesses are not workers. They put out that narrative as if those employers need to be taxed more. Let me tell the House about one of those businesses, which I visited just yesterday. The Turkey Inn in Goose Eye is a pub that is much loved by locals and visitors alike, and I called in there last night to have a meal. The owners of that pub are grafters. They produce excellent food that is second to none and they support our local community with many local activities. They do everything right, working day in, day out to support the community, but yesterday, on the back of this Budget, they announced that they were cutting their opening hours from seven days a week to just four, and they were clear about why. In their own words, they said: “With no measures in the budget to help small hospitality businesses and local pubs like ours, we must take this step”. That is the verdict not of a politician or of a Labour think-tank but of hard-working people in my constituency who have been impacted by this third Labour Budget. The Turkey Inn is not alone. I speak to pubs and small independent businesses every single week in my constituency and they are telling me the same thing. Labour is not on the side of our hard-working businesses, and that is impacting them. This Labour Budget has not provided any breathing space at all. This Government must wake up and listen to our small and medium-sized businesses, who are the backbone of our communities and our local economies, because they are pushing them to breaking point. If the Government do not wake up and listen, I fear for all of them. A simple policy of tax, tax, tax on our businesses with more regulation is stifling those businesses, not helping them thrive.