Big chains like Wetherspoons will be able absorb extra costs - but frustrations at government are palpable
At a time when economic growth is at the heart of what the government wants to achieve, business believes ministers have shot themselves in the foot, making growth more expensive and thus less likely.
Wednesday 19 February 2025 15:25, UK
"They were a little bit arrogant to start with... I think they are learning on the job."
The obvious frustration of Sir Tim Martin, founder of Wetherspoons, at the government and its handling of the economy.
And he's not alone.
I've spoken to dozens of business leaders in recent months, many angry about tax increases on employers just around the corner, which alongside Wednesday's inflation is piling costs on businesses - many who fear they won't survive.
"Spoons" will of course, as will the big supermarkets, be able to absorb the double whammy of employee national insurance increases and a hike in the minimum wage from April.
Though those same companies are also clear it will mean likely price rises for customers, fewer people being hired and fewer pubs or shops opening in the future. Many smaller businesses are equally clear it may force them to close altogether.
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The frustration and anger is rooted, they argue, in the political choices that Labour made before the election. Maybe good political choices but bad economic ones.
In order to win, Sir Keir Starmer ruled out tax increases for employees, on VAT, on income tax - what Labour branded "no tax on hard-working people".
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But in doing so - they've boxed themselves in, once in power. With the public finances in a pretty poor state - taxes had to go up and it was decided they would go up on those who employ people.
At a time when economic growth is at the heart of what the government wants to achieve, business believes ministers have shot themselves in the foot, making growth more expensive and thus less likely.