THE autumn statement had "very little for local business" according to the owner of an independent city pub.
Jeremy Hunt announced two major tax cuts and claimed the economy had “turned a corner” in his autumn statement.
For businesses, the decision to make the “full expensing” regime permanent delivers a tax cut of around £10 billion in the hope that it will promote investment.
The chancellor also confirmed that the minimum wage would rise by almost 10 per cent.
Jon Dean, co-owner of The Alma Tavern, on Droitwich Road, said that there was not much in the statement that would help smaller businesses.
He said: "There was not an awful lot in the statement that helps local independent business like ours.
"Although a decision has been made to freeze alcohol duty until August 2024, a lot of the decisions still mean we are likely to review our prices in January as the barrel prices are likely to increase.
"I fully believe as well that employees deserve to have an increase with the national minimum wage, but every time this happens, this is another thing to consider as a business owner."
Mr Dean explained that the Valuation Office Agency moved the business' rateable value up, meaning that higher rates are needed to be paid.
He said: "Originally our rates were at £8,000, meaning we were below the £12,000 threshold, but they have now risen to £18,500.
"Our weekly breakeven point is just going to get higher and higher for us. From the consumers point of view, rise in prices that we need to make to help us breakeven is concerning as it could lead to people not being able to afford to go out as much any more."
Despite the chancellor's upbeat assessment of the UK’s economic fortunes, analysts have cast doubt on whether the measures announced on Wednesday were sustainable.
The two biggest announcements from the autumn statement were a pair of tax cuts billed as the biggest since the 1980s.
For employees, the chancellor cut national insurance from 12 per cent to 10 per cent, while the self-employed also received a cut in national insurance in what amounts to a £10 billion tax giveaway.
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