Oswestry businesses 'need all the support they can get' after tax rises, North Shropshire MP says

During a visit to businesses in Oswestry last week, Liberal Democrat MP Ms Morgan said town firms were "feeling the pinch" around national insurance costs, recruitment struggles and business rates.

Many businesses have been critical of government policy since last year's Autumn budget, at which Labour chancellor Rachel Reeves announced increases in employer based national insurance contributions(NICs) and national minimum wage which kicked in at the beginning of April.

Ms Morgan met with five town businesses and the town's Business Improvement District(BID) group last week to hear their concerns.

“It’s an incredibly challenging environment for businesses at the moment, who are really feeling the pinch of the Labour Government’s hike in employer National Insurance contributions, the challenges of a flawed business rates system, and tough recruitment," she said.

“It was good to listen to these concerns because North Shropshire businesses need all the support they can get. I’ll continue to highlight in Parliament the issues that our local businesses face and fight for changes that will make it as easier for them to not just survive, but to thrive.” 

Earlier this year, a Shropshire Chamber of Commerce survey revealed nearly three quarters of firms said they expected to increase prices over the next three months in the wake of the budget, described by chamber Chief Executive Ruth Ross as a "black cloud" hanging over industry.

The government says changes to employer NICs announced are forecast to raise between £14.6 billion and £18.3 billion a year for the next five years, while over 3 million of the country's lowest paid workers received a pay rise as the result of changes to the minimum wage.

Adele Nightingale, manager at Oswestry Business Improvement District, said: “It was extremely valuable to have Helen meet directly with Oswestry businesses to hear their concerns firsthand, including issues around poor public transport affecting recruitment, limited local training for required skills, Brexit compliance costs, and complex import/export red tape that's both expensive and resource-intensive. 

“BID proactively supports local businesses through advocacy on a range of important local issues, providing essential training courses, some that are legally required, including first aid, fire warden, and forklift training, plus softer skills like marketing. 

"We also alert businesses to funding opportunities, promoting them through our online directory and social media, to ensure Oswestry's business voice is clearly heard with our local authority and MP.”