Sector reacts to budget announcements

Wholesalers have been reacting to the budget with many criticising Chancellor Rachel Reeves for a lack of vision which will result in a heavy financial burden on the sector

FWD has calculated that its members will need to find an addition £110m per year in direct wage costs as a result of the rise in national living wage which was announced as part of the budget on 30 October 2024.

John Kinney, managing director, Unitas Wholesale, was quick to outline his concerns: “Very few wholesalers currently have the headroom to fully absorb the inflationary increases in NLW and employers’ NI contributions announced in the budget,” he said. “That leaves them with no option but to pass extra costs on to their customers, or cut back on their investment, employment and expansion plans.”

He also addressed the changes to business rates proposed for 2026-7: “The permanently lower business rates tier for retail, hospitality and leisure businesses from 2026-7 is a welcome step, but immediately reducing the current 75% discount means that some of our members’ hospitality customers will be facing catastrophic business rate increases in April next year, which is likely to lead to closures or significant costs being passed on to their customers.”

Dr Jason Wouhra OBE, CEO of Lioncroft Wholesale, felt let down by the budget describing it as a ‘nail in the coffin for businesses wishing to grow and invest’.

“This budget is a clear sign that the current government is simply not business friendly at a time when businesses are struggling to grow and dealing with rising costs of operations,” he said. “This will create a damaging landscape for job creation and stifle entrepreneurial spirit. The UK needs to be competitive on a global platform and to do this we need to encourage businesses to invest for the future. This a disappointing outcome for business and its future in our country.”

Tom Gittins, CEO, Confex, agreed: “It is a great shame that the Labour Government have looked to restrict business growth with the increase of the Employers National Insurance contributions. This increase will hit small business across the UK particularly hard and this seems very short sighted.”

budget Confex Government Jason Wouhra John Kinney Lioncroft Wholesale Tom Gittins Unitas Wholesale