Bath MP stands up for local businesses, slamming “unfair tax hikes” in the Budget

From April 2025, employer’s National Insurance will rise to 15%, meaning businesses will face a £25 billion hit. The MP for Bath has criticised the government for burdening businesses in Bath with this “unfair tax hike” and has warned them not to let local business owners cover the costs left behind by the Conservatives’ economic legacy.

The Bath MP has put her full support behind local businesses, having discussed the impact of the tax hike with local CEOs of the Boston Tea Party, which has two cafés in Bath, Cannon Clarke, a family-run business with expertise in waterproofing, and TONIQ, a small independent gym in Bath.

The executives worry that the Chancellor’s tax rise will add enormous pressure to an already struggling sector which could harm their businesses, their employees and the local communities that depend on Bath’s thriving high street.

Wera has also raised concerns for residents in Bath who receive hospice care, after Dorothy House Hospice Care estimated the impact of the changes announced in the budget would cost them an additional £422,000 a year to provide specialist end-of-life care.

Ahead of the Budget, the city’s MP also wrote to the Chancellor, demanding that the government support businesses in Bath by overhauling the broken business rates system and extending rates relief in the interim.

Wera Hobhouse, Liberal Democrat MP for Bath, said, “Increasing employer National Insurance risks disaster for our high streets. We know that the Conservatives have left behind a dismal economic legacy that urgently needs addressing – but it should not be up to local business owners to clean up their mess.

“Having spoken to Bath CEOs of family-run businesses and care providers, I’m deeply concerned that these unfair tax hikes will see costs passed on to workers and consumers, while putting undue pressure on an already struggling sector.

“Rest assured, my support for local businesses is unwavering and I will fight to make sure that it is not hard-working families and local businesses who foot the bill for the Conservatives’ chaos.”

Arron Collins-Thomas, owner of TONIQ, said, “The recent budget could seriously impact small wellness businesses like ours. We planned to expand TONIQ this year to create more jobs for Bath, but rising costs, especially from employer NI hikes, energy prices, and reduced business rate relief, are forcing us to reconsider.”

David Clarke, CEO of Cannon Clarke, added, “Just the changes in employers’ National Insurance alone will mean my cost base will increase by a massive £30,000 per annum at a stroke – not a fortune in the overall scheme of things, but a huge sum for us to swallow without any negative repercussions following on. SME businesses like mine certainly do not have ‘pots of gold’ sitting around to pay for this increase.”

Sam Roberts, CEO and co-owner of the Boston Tea Party chain agreed, saying, “The budget is a bitter pill to swallow for hospitality. Just as we’re recovering from the pandemic, rampant inflation, the energy crisis and cost of living crisis, we’re now facing a tax on employing people.”

Pictured above: Wera Hobhouse, Liberal Democrat MP for Bath