Today’s Autumn Statement presents a mixed bag for city centre businesses.
While the increase in the national minimum wage to £12.21 per hour from April 2025 is a positive step for workers, the rise in employer national insurance contributions to 15% will undoubtedly put additional financial pressure on many businesses.
The increase in the employment allowance to £10,500 is a welcome relief for smaller businesses, but the overall tax burden remains significantly high.
While avoiding the complete removal of business rates relief is a relief, businesses will still need to cover the gap from the current 75% relief to the new 40% rate.
With downgraded economic growth forecasts, more needs to be done to stimulate growth.
The announcement of plans for long-term reform of the business rates regime is encouraging. And the additional investment to tackle shoplifting is also welcome, but it needs to be part of a broader package of investment and collaboration to revitalise our high street.
We urge the government to consider further measures to support city centre businesses, which are vital to the local economy and community.
Diane Jarvis
Head of Business Operations
The significance of this budget for city centres should not be underestimated - and it’s looking like a mixed picture for our levy payers.
The Chancellor’s clear intention is to grow the economy and enable public sector finances to recover in the medium term. However, in the short term many of our members are likely to struggle with the additional costs that will impact on their businesses alongside the continuing high interest rates and higher prices.
Additional funding for infrastructure, including transport and housing is obviously welcomed by the BID. The investment in R&D is also welcomed, as is the additional funding for local authority planning officers. Conversely though, cuts in local growth money are a concern. Hundreds of millions are to be cut from the UK Shared Prosperity Fund. Sheffield City Centre has not done well from levelling-up funding, but it is not clear what will replace it.
The picture also looks mixed for hospitality. Nationally, the hospitality sector estimates that their businesses will face £3 billion in additional taxes next year albeit business rates for the sector are to be reset on a permanently lower level.
It is good to hear that additional grant funding is being made available to councils that are most in need but it is not understood yet whether Sheffield will benefit.
Tony Stacey
Chair of the Sheffield BID Board
A summary of the main announcements relevant to the high street and city centre businesses are highlighted below.
Business rates
Increase in National Minimum and Living Wage
Tax for employees
Change in insurance increase for businesses
Unchanged corporation tax
Continued Entrepreneurs Relief
Retail crime
Other - transforming business rates