While the Chancellor has ruled out an income tax rise in this year’s Budget, many people will still find themselves paying more tax in the years ahead. Frozen thresholds mean that increases to both Minimum Wage and the National Living Wage will push more workers into higher tax bands — without any adjustment to the bands themselves.
With this in mind, Gi Grimsby News visited Cleethorpes to hear how small business owners are feeling compared with this time last year, when they were already grappling with higher wage costs and national insurance contributions.
Most of those we spoke to said the latest Budget had left them concerned — both about the pressure rising wages will place on their ability to stay afloat, and how higher tax bills for many could weaken local trade. Several said they felt the decisions that had been made were ‘short sighted’ and would do more harm to households and businesses in the long run.
Karen Webb-Meek, Owner of Dollie Jewellery in Cleethorpes, told Gi Grimsby News that she feels the last two budgets have “absolutely hammered small businesses.”
“They keep forcing business owners to increase wages. Where do they think we’re gonna find the extra money for wages?” She questioned. “We’re a tiny business. We’ve only got three full time staff and two part-time, and it’s really going to affect us if you’re taking into consideration all the hourly rates. It’s £400 or maybe £500 a month. Where are we finding that extra money from? What we’ll have to do is increase the prices of our products, which is what everybody will do. So it’s just a circle. It’s stupid. Can they not see? That fuels the cost of living. And everything goes up again. Where does it finish? She’s really, really hammering small business. It’s the worst government we’ve had for years.“
Jamie Bottomley, who runs Tap and Tail on Sea View Street, said the announcement of a reduction in business rate multipliers “barely scratches the surface” of the pressures businesses are facing.
“Rising wage costs, energy bills, and supplier prices continue to escalate, and without any targeted VAT support for hospitality, the financial reality for pubs and restaurants remains extremely challenging.”
Several business owners said that with disposable income expected to tighten further for most middle-income households, footfall and spending remain “fragile”, while operational costs continue to rise — putting many businesses at risk.
“The budget does little to bridge that widening gap,” Jamie added. “For many of us, it feels like we’re being asked to deliver more with less, while navigating policies that don’t reflect the realities of running an independent hospitality venue. Hospitality is a cornerstone of local economies, employment and community life. If the government is serious about protecting the high street, we need meaningful, sustained support; not short-term patches that fail to address the structural challenges our sector faces.”
Part of the Gi Grimsby News team since 2020.
Roy Horobin
Joined the Gi Grimsby News team in 2025.