Rachel Maskell MP said the “broadest people” needed to be paid more and that raising the minimum wage would “put even more money in working people's pockets” and help people spend more. He said the measure was necessary because it would help the economy.
Mr Maskell was responding to claims by leading accountancy firm Azets that York hospitality businesses may be facing their toughest financial challenges since the pandemic.
York Central MP says some businesses will have to tighten their budgets and the budget changes will create “further challenges”, but they will still be able to benefit from small business relief in the budget and reform to business rates. acknowledged that this is expected.
Mr Maskell said he meets regularly with businesses and plans to meet again on Saturday (December 7) as part of Small Business Saturday.
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She added: “York has an incredible range of shops and places to eat and we need these businesses to thrive.
“Azetu’s figures do not take into account the impact on spending of rising household incomes, public sector wage increases, workers spending more, or the impact of small business relief, which benefits the smallest of people. Because of this, I would like to further investigate the business.
“I will continue to investigate the evidence and speak up for York businesses.”
Similarly, Luke Charters, head of York Outer, said: “The Budget has reduced business rates and reduced tax rates on beer and cider served in pubs.
“The record increase in Employment Allowance from £5,000 to £10,500 has been welcomed by the industry and shows the Government’s commitment to boosting jobs and will support small businesses across the industry. This means small and medium-sized enterprises will not have to pay anything to NI.”
He added: “York is rich in tourism and we are very pleased to meet regularly with hospitality and tourism businesses operating in York Outer.”
But Kevin Hollinrake, Conservative MP for Thirsk and Malton, said the budget changes would “mean a lot of businesses are going to fail”.
Mr Hollinrake, the shadow business secretary, said changes to National Insurance and the National Living Wage (minimum wage) would cost employers £10,000 a year per full-time employee.
The MP said he had recently spoken to a civil servant who told him the changes would make him £40,000 a year worse off.
He added: “Many businesses are still recovering from the coronavirus and the cost of living crisis. This is the worst news and will impose significant costs on already struggling businesses.”