West Norfolk businesses say they are at “breaking point” following today’s Budget – with some facing closure if they cannot find a way to balance the books.

Business owners across our area have voiced serious concerns about increases to the minimum wage and national living wage, with some saying the hikes will make it “too expensive” to take on new staff.

Chancellor Rachel Reeves made her Budget announcement this afternoon, after its contents were leaked early.

She said more than 750,000 retail, hospitality and leisure properties will see “permanently lower tax rates”, but both the minimum and national living wage have been put up.

This has led to worries in West Norfolk, with many business owners saying too little has been done to counteract the damage caused by last year’s Budget.

Daniel High, who runs Lynn town centre nightclubs Rewind and Dr Thirsty’s as well as The Lattice House pub, believes the Government is too busy focusing on “big investments” rather than independent businesses.

“It feels like every time, small businesses are forgotten about,” he said.

“We make up 6% of the economy, and we are forgotten about. I would like to see bigger rates of relief for smaller and start-up businesses and a reduction in VAT for hospitality.

“I am all for wage increases, but people never see the benefit of it because everything else goes up.

“I just hope people recognise this and come out and support local businesses. It does feel like it is all doom and gloom at the moment.”

Lisa Staples, who owns the popular Tipsy Teapot on Lynn’s High Street with her husband Neil, is concerned for the future of small businesses around the area following the Budget.

She “absolutely supports” wage increases for her hard-working team – but says the challenge is that these do not exist in isolation.

“In our case, energy costs alone have risen by more than 400% in the past year, which is simply unsustainable for an independent business,” she said.

“Freezing VAT and national insurance thresholds until 2031 doesn’t help small operators absorb those increases – it just keeps us locked into a system that doesn’t flex with economic reality.”

Mrs Staples added: “While lower business rates for some sectors are welcome on paper, for many of us, the savings are immediately swallowed by huge hikes in utilities, suppliers, staffing costs and the continued rise in everyday operating expenses.

“The minimum wage increase is only a good thing if businesses are still able to offer the jobs in the first place. Right now, many hospitality venues are being pushed to breaking point, and for many, numbers simply don’t stack up.

“What we wanted to see in the Budget was tangible, immediate support on the major pressures actually crippling small businesses – particularly energy cost reduction, or at least a meaningful support scheme.

“Without targeted relief, many small businesses won’t survive long enough to benefit from any long-term measures. We have not seen anything in this Budget that can help hospitality at all.”

Jim Luff, who owns The Station Bar in Swaffham, is equally unimpressed after today’s announcement.

Although he wants to see all his staff on “a proper wage”, he believes the increases will make it “too expensive for companies to employ people”.

“I think it will just make more unemployment initially,” he said.

“For us with a 40-hour week, that’s around £500 a week. We’re not going to want to take people on over the age of 21 – it won’t be viable for us to have them wipe tables and be waiters.”

Mr Luff did add: “Obviously any tax reductions for the hospitality industry has to be a plus, because everywhere is struggling.”

In Watlington, Watatunga Wildlife Reserve owner Edward Pope also has concerns over the wage increases.

His worries are so profound, in fact, that he says the threat of closure is looming over the popular attraction.

He said: “’The prospect of further tax rises, combined with another increase to the minimum wage, is worrying for small businesses like ours.

“While we fully support fair wages, considerable annual rises simply aren’t achievable for businesses already stretched by higher costs across the board.

“Small businesses are being dragged under, unable to expand, reduced hiring, and for Watatunga Wildlife Reserve, there is a significant threat to the business as a whole and those we employ.”

Voicing a similar sentiment is Ben Marshall, the managing director of Pensthorpe nature reserve.

Speaking after the Budget announcement, he said: “We were taken by surprise by the size of the minimum wage increase for 21 and over. An 8.5% jump creates very real pressure for businesses of our size.

“It also risks making it harder for young people to gain experience because employers facing steep wage bills often have to reduce supervisory or middle-management posts, which already limits early career progression.

“We absolutely recognise the cost of living challenges for everyone, but this level of increase is well beyond what most of the sector was expecting or can easily sustain at current staffing levels.”

Mr Marshall has welcomed the confirmation of lower business rates for leisure and hospitality companies.

However, he added: “The extension of the income tax threshold freeze was widely trailed, but whether people realise it or not, it will affect everyone.

“It’s disappointing that a more balanced middle ground wasn’t found, especially as it pulls more people into higher bands without an actual rise in pay.

“And while any fall in inflation is good news, a projected 0.4% drop is not something we can get overly excited about. What really matters is how core inflation behaves, and whether cost pressures for food, utilities and wages continue to ease over the next year.”

Toby Stuart-Jervis, the managing director of timber yard Pattrick and Thompsons in Lynn, believes the construction industry will remain “flat” for the next year.

He blames the Government for falling short on house-building targets, resulting in a loss of trade for his company.

“I think the problem is that the damage is already done,” he said.

“The rise in minimum wage will cost us something, but it is not disastrous. I think all the damage was done in the previous budget.

“The construction industry has been in the doldrums for four years now. We do not see any major improvement coming.

“The budget is going to add a bit of cost for us, but nothing of a major concern.”

On the other hand, Brian Hallard, director of Hunstanton’s Princess Theatre, is pleased following today’s announcement.

He is happy to see lower business rates, even though he is still “in a mood” over last year’s Budget.

Mr Hallard is still concerned about rising costs, saying the 2024 changes have cost his industry £2,500 per employee.

Additional reporting by Alice Hobbs, Molly Nicholas and Kris Johnston