Brecon and Radnorshire Senedd Member's opinion column

The recent UK Labour Budget has dealt a blow to many in our area, whether that’s small and medium businesses, on healthcare providers, or on the agricultural community. Many have approached me to express their concerns over the increase to employers’ National Insurance and the National Living Wage. They are questioning just where this money will be found at a time when profits are already slim.  Whilst any increase is welcome from an employee’s perspective, it is ultimately a cost that businesses must cover, and that could mean reducing staffing hours or raising prices for the consumer. 

The hospitality sector will be the hardest hit, and many within tell me this budget might push them over the edge. We all want to see our economy grow, but it is these small local businesses that are the beating heart of our economy, and we need to ensure they are given the right conditions to thrive.

I am particularly concerned over the impact that the NI and the Living Wage increases will have on our health sector. Whilst the NHS is exempt, the supporting businesses are not, meaning local residential care homes, GPs, privately run care homes will all have to find more money to pay staff at a time when their contract with the Health Board is at a fixed price.

The biggest headline is on the changes to Inheritance Tax Relief for agriculture. Many of our farms are family owned, passed down from generation to generation.  It does not have to be a ‘large’ farm to get over the £1million threshold.  We should be valuing our active farmers for the environmental and conservation actions they undertake, for producing top quality food to the highest welfare standards around the world, for shaping the landscape we all live in and which so many other sectors rely on, most noticeably tourism. Rachel Reeves said she wants to protect small family farms, but this policy does just the opposite. I fear the budget announcement could spell the end of the family farm as we know it.

I recognise Labour’s argument for raising more money for public services, but we all know that throwing money at a problem will not necessarily solve it!  The NHS is an example of this: more money spent each year, but waiting lists still getting longer.  We need to rethink the way our public services are delivered, how they can be made more efficient and ensure every single penny of taxpayers’ money is spent wisely and produces results. 

In light of the budget, many of our businesses are currently looking for efficiencies and better ways of working if they are to survive and thrive.  All sectors need to do just that, from our Health Boards, Local Authorities, up to Welsh Parliament and UK Parliament level.

Brecon and Radnorshire Senedd Member James Evans