Keir Starmer’s claims to not be burdening the working person are ringing hollow among Sheffield’s small business community, with many already struggling with rising costs.
One affected business is the Steel Cauldron in Broomhall. Rob Downham, pictured here in his second role as Father Christmas, pointed out the damage that would be caused by the proposed increases to National Insurance.
“An employee with us earning around £23,000 a year is going to cost us about an extra one and a half thousand pounds in national insurance, but actually, that’s combined with the fact the minimum wage has increased by almost 40% over the last four years.
“So actually since I set up this business just over four years ago, the cost of employing a person has almost increased by 50%, and will reach 50% in April.”
The raise comes at a time when businesses have also been badly hurt by steep increases in rent and utility costs. The Steel Cauldron’s expenses on utilities alone have gone up by 500% in the past few years.
Carolina, the manager of family-owned Tropicana on Crookesmoor Road, is contemplating moving out of the area in January due to rising costs.
She said: “I would say we need more support with the bills, rent, something. In this area, you need to work really hard to be able to pay the rent.
As a business, we’re keeping people together, we’re giving them space you know? Because this is all about social life.”
Many are not convinced by the extent of these difficulties.
President of Sheffield’s Trade Union Council Sam Morecroft argues that small businesses often exaggerate the extent of trouble they face. Whilst he approves of extra financial aid to be offered to legitimate cases, Sam calls on owners to “open up their books” to receive help.
“Do I have a problem with employers paying more? No, absolutely not.”
He continued: “In genuine cases, where small businesses can’t afford to pay the new minimum wage or pay their national insurance contributions, fair enough. Particularly if it’s something that people want in their communities to keep running.”
Additional reporting by Nicole Taylor
