What changed
Businesses in Devon say the cost of employing people is making them pause hiring before Wednesday’s Budget.
Tim Randell of Links Publishing says he is holding back two planned hires. Employer National Insurance rose to 15% on salaries above £5,000 from April 2025, while the legal minimum wage for workers over 21 rose to £12.21 an hour.
Why it matters
The pressure is showing up in decisions that are easy to miss in a Budget speech: vacancies left unfilled, expansion delayed and fewer opportunities for younger workers.
Small businesses are asking for tax relief. Hospitality employers want VAT on pubs and restaurants cut from 20% to 10%, saying lower costs could be partly passed to customers and might encourage more spending. The government has not said whether it will change National Insurance, minimum-wage policy or hospitality VAT.
The strain reaches beyond employers. Hugs Children’s Cancer Charity says tighter household spending is reducing fundraising and the number of families it can support. That makes the Budget’s employment-cost choices relevant not only to company payrolls, but also to local services relying on donations.
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