Independent businesses struggle with rising costs and taxes

Summarised from 2 outlets · Updated 17 Oct, 08:02 · Archive

Independent business owners are calling for government help as they struggle with energy costs, inflation, wages, taxes and business rates.

Independent business owners are making public pleas for government support as they face mounting financial pressures. A Manchester bakery owner posted a viral open letter describing how 'since Covid, independent businesses like ours have dragged ourselves through crisis after crisis'. She detailed the costs crushing the sector: energy prices, fuel costs, food shortages, inflation, increasing wages, pension contributions, corporation tax at 25 per cent, business rates and increased employer national insurance.

Despite achieving £2.3 million in annual turnover, the bakery owner said there was 'nowhere left to squeeze'. She called on the government to engage directly with independent business owners in the hospitality sector to understand their real financial situation, emphasising that turnover 'guarantees a business owner zero sanity'.

The Daisy Green Collection, a London-based café chain operating 21 locations, illustrates the problem. The company reported £26.9 million turnover but only £677,952 in pre-tax profit while employing more than 450 people. Operating on such thin margins leaves businesses vulnerable and unable to absorb further costs or mistakes.

Business rate increases are compounding the pressure. Some long-established independent businesses previously exempt from rates are now facing new annual bills as their rateable values change, adding another financial burden to operators already stretched by other rising costs.

How it is being reported

• Dear Mr Burnham, is your government fighting for independent businesses?Like a magnet, my eye has been drawn to the social media reels starting 'Dear Mr Burnham'.Norwich Evening News · 17 Oct, 07:48
• Dear Mr Burnham, is your government fighting for independent businesses?Like a magnet, my eye has been drawn to the social media reels starting 'Dear Mr Burnham'.Eastern Daily Press · 17 Oct, 07:48

In this story: Manchester · Daisy Green Collection · London · Norfolk

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