Government warned that Wednesday's budget must not hinder Leeds' coronavirus recovery

The Government must not hinder Leeds' recovery from the coronavirus pandemic, a leading business figure has said ahead of the much-anticipated Budget update.
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Chancellor Rishi Sunak is expected to announce a host of changes on Wednesday as part of his Autumn Budget, which coincides with the conclusion of the 2021 Spending Review.

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An increase to the National Minimum Wage for all over the age of 23 is among the policies to have been teased in advance. The Chancellor is expected to to take the rate for over-23s from £8.91 to £9.50 an hour.

Chancellor Rishi Sunak is expected to deliver his full autumn budget on Wednesday lunchtime. Picture: Aaron Chown/PA Wire.Chancellor Rishi Sunak is expected to deliver his full autumn budget on Wednesday lunchtime. Picture: Aaron Chown/PA Wire.
Chancellor Rishi Sunak is expected to deliver his full autumn budget on Wednesday lunchtime. Picture: Aaron Chown/PA Wire.
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Despite widespread support from employees for such a change, Mike Cartwright, policy and representation executive for West and North Yorkshire's Chamber of Commerce, has warned any changes to business costs must not impact on the city's recovery from the pandemic.

“It’s obviously been a very difficult time for many businesses over the last 18 months, and they are still in a state of flux and uncertainty in many cases,” he said. “We recognise that the Treasury will want to recoup some of the money it has used to help save the economy since March 2020, but we hope that the measures used do not hinder the recovery or lead to stop-start progress.”

These concerns were further echoed by the Federation of Independent Retailers (NFRN), which has expressed concerns that the minimum wage increase will serve as a further blow to businesses already struggling.

“Independent retailers have already been hit hard by the Covid pandemic, with many having to reduce staff levels and hours and take on more of the work themselves,” said NFRN national president Narinder Randhawa. "This increase to the national minimum wage will only make matters worse.

Those impacted by the Universal Credit cut may now be boosted by the prosed minimum wage increase. Picture: PA Wire/PA Images.Those impacted by the Universal Credit cut may now be boosted by the prosed minimum wage increase. Picture: PA Wire/PA Images.
Those impacted by the Universal Credit cut may now be boosted by the prosed minimum wage increase. Picture: PA Wire/PA Images.
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“At a time when small businesses need help and support more than ever, this move by the Government feels like a kick in the teeth for those that are already struggling to survive.”

On the street in Leeds yesterday, the rumoured increase was seen largely a positive but many questioned whether it was a case of too little, too late after a year full of gut punches.

“I think an increase in the minimum wage is the least they can do, but for those poor people hit hardest by the pandemic I wonder whether it will be enough,” said Irene Brown, 66.

The rumoured increase comes a matter of weeks after the Government faced widespread criticism following the decision to hit struggling citizens with the double blow of increased gas prices and the removal of the £20 Universal Credit uplift.

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Expected to play a key role in the budget is the Government's strategy to recover money lost during the pandemic, including almost inevitable tax increases.

Among those policies is an increase in pension saver tax for those on the highest salaries. This has faced criticism, with many seeing it as an attack on those saving for the future.

Leeds resident Paul Wilson, 54, echoed these concerns, saying: “I think hitting pension savers with increased tax is directly punishing those sensible enough to save money with the future and retirement in mind.”

Mr Sunak is expected to deliver his full Autumn Budget at 12.30pm on Wednesday lunchtime.

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