😔 High Streets: Autumn Budget 2024

• Personal Connection to High Streets: Victoria Collins (Harpenden and Berkhamsted, LD) shared her personal experience of working in her mum’s gift shop, highlighting the emotional and financial struggles of running a high street business amidst economic challenges and competition from online retail. She expressed sadness at seeing such businesses close down.

• Budget Impact Concerns: Collins discussed how the Autumn Budget 2024 affects high street businesses negatively, predicting a rise in costs and potential closures. Several MPs, including Richard Foord and Rachel Gilmour, expressed similar concerns, suggesting the government should explore ways to mitigate these impacts.

• Rising Costs and Business Rates: Local businesses surveyed by Collins are worried about increased national insurance contributions, changes in business rates, the rise in the minimum wage, and other cost hikes. These factors collectively strain businesses already struggling with recovery from Brexit, Covid-19, and rising living costs.

• National Insurance and Minimum Wage: The increased employer national insurance contributions set to start on April 1 and the hike in the minimum wage are significant worries for businesses. Many fear these will force reduced investments, shorter operating hours, and staff cuts.

• Business Rates System Critique: There was a strong call for reforming the business rates system. Suggestions included replacing it with a commercial landowner levy. The current system is seen as disproportionately affecting high street businesses with smaller premises but high property values.

• Government Response and Reforms: Economic Secretary Emma Reynolds responded, acknowledging the challenges faced by high street businesses. She confirmed the government’s commitment to reforming business rates with lower tax rates for small businesses starting in 2026-27, funded by higher taxes on larger, out-of-town businesses. However, she refused to cancel or delay the national insurance changes.

• Proposed Support for Pubs and Alcohol Duty: To support pubs, the budget includes a reduction in alcohol duty on draught products, expected to lower costs significantly for the sector.

• Call for Fairness and Further Engagement: Reynolds assured that the government is engaging with businesses to reform business rates to create a fair system, protecting small businesses and ensuring the high streets remain vibrant centers of community and economic activity.

• Vision for High Streets: Collins concluded with a hopeful vision for the future of high streets, emphasizing the need for proper public transport, walkways, cycleways, and parking improvements to make them vibrant and accessible community hubs.

The session exhibits moderate disagreement, primarily along party lines, but lacks sharp polarization or personal attacks. Key points of contention include:

• Criticism of Budget Measures: Liberal Democrat (LD) and DUP members argue that the Autumn Budget’s policies (e.g., increased NICs, business rates changes) disproportionately harm small businesses and high streets. Examples include claims that the Budget will force closures, reduce staffing, and stifle investment.
• Government Defense: The Labour Minister acknowledges concerns but defends the Budget as necessary for economic stability, citing reforms to business rates and support for pubs. She rejects calls to reverse NICs increases or delay implementation.
• Policy Alternatives: Opposition members propose alternatives (e.g., replacing business rates with a commercial landowner levy, delaying NICs), which the government does not endorse.
• Partisan Alignment: Disagreements follow party lines, with LD/DUP members united against Labour’s policies, but the debate remains civil and focused on policy impacts rather than personal accusations.
• Lack of Escalation: While tensions exist, the discussion stays procedural, with no overt hostility or procedural obstruction.