TAX THREAT
Fury as Keir Starmer refuses to rule out MORE tax hikes – as small businesses brace for £32k hit from Budget
Sir Keir Starmer has also brushed off his tanking approval ratings
THE Prime Minister has refused to rule out further tax hikes as small businesses brace for a £32,000 hit from Labour’s Budget.
Sir Keir Starmer said rises are not planned but events such as the Ukraine war could change that.
It comes as Tory research warns Rachel Reeves’ Budget will deliver a hammer blow to high street shops.
Analysis claims the average shop will be hit with £7,576 in extra employer National Insurance contributions and £3,091 in higher business rates.
For a small chain of three shops, the burden will balloon to a total £32,001.
The rise in National Living Wage will cost £12,057 for a single shop and £36,173 for a chain of three.
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Employment rights rules are also set to add another £1,477 for small shops and £4,437 for chains, the research shows.
Altogether, small shop chains could face £72,611 in extra costs — enough to pay three full-time staff the new living wage.
The data was released ahead of Small Business Saturday — a campaign to shop local.
Shadow Business Secretary Andrew Griffith told The Sun: “Labour’s National Insurance jobs tax and hikes to business rates will lead to job losses, lower wages and shuttered businesses.”
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Asked to rule out tax rises, Sir Keir said: “I can’t say there are no unforeseen circumstances in the future that wouldn’t lead to any changes.
"If you just look at Covid and the Ukraine war, there are things we can’t see now.
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“Our intention was to do the tough stuff in that Budget.”
He also brushed off his tanking approval ratings, saying: “I will be judged at the end of the five-year term on whether we have delivered what we said we will.”
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