Sussex pubs urge budget support amid rising costs

Business owners in Sussex are nervously awaiting the chancellor’s second Budget after a set of tax hikes this time last year hit them hard.

Rob Barr said the two Sussex pubs he owned had “supported local communities” and “fed into the fabric of Britain” for centuries, but needed help to survive.

In a letter to MPs ahead of the budget, he said: “All we need is a fair chance and this industry will pay the great British people back in spades, as we have always done.”

A government spokesperson said pubs were “vital to local communities,” adding that ministers were lowering business rates, cutting alcohol duty on draught pints, capping Corporation Tax and reforming licensing rules.

Mr Barr, who owns the White Hart in Henfield and the Onslow Arms in Loxwood, is among those calling for business rate reform, a “fairer” VAT system and a reversal of a rise to employer’s National Insurance (NI) for hospitality and retail businesses.

He said the government should stop “parting the way” for large, technology-led companies and should support British pubs.

His call was echoed by Anne Ackord, chief executive of Brighton Palace Pier, who said the chancellor needed a better understanding of the effect of NI and minimum wage rises so she “does not place further burdens on the backbone of our economy”.

She added: “Stability is the way to growth so we need a clear road map.

“Business rates reform is long overdue and there are still concerns over the Employment Rights Bill giving day one protection for sick pay and unfair dismissal.”

A Treasury spokesperson said: “The chancellor has set out the context for the Budget, recognising global and long-term economic challenges.”

The government added: “The Budget will continue to build the strong foundations to secure Britain’s future and on the priorities of the British people – cutting waiting lists, cutting national debt and cutting the cost of living.”

Since April 2017, the two-child benefit cap has meant parents can only claim universal credit or tax credits for their first two children.

This affects 8,730 households across Sussex, with 30,550 children who are the third or subsequent born in their family missing out, according to the latest figures from the Department of Work and Pensions.

Crawley, Hastings and Brighton & Hove have the largest numbers of affected families who could have received an average of £4,400 in benefit entitlements a year, roughly a tenth of their total disposable income, according to the Institute for Fiscal Studies.

Meanwhile, a Hastings foodbank volunteer said she had “got used” to people telling her they had not eaten in days, as data obtained by the BBC showed soaring numbers of people arriving at hospital in the South East either malnourished or with nutrient deficiencies.

Chancellor Rachel Reeves could scrap the limit entirely or extend the benefit to all families, irrespective of the number of children, but at a lower level.

Furthermore, income tax thresholds are expected to be frozen, and critics argue this could push more people into being higher-rate tax payers.

Meanwhile, a freeze on rail fares for season tickets and off-peak returns has already been confirmed.

Household energy bills could see some relief with a cut in VAT or a reduction in some of the additional costs suppliers can pass on to consumers.

The South East has more plug-in electric and hybrid car owners than anywhere else in England, with 27,000 registered across Sussex.

Sales have been rising, but the chancellor is considering a new tax on electric vehicles to make up for the fall in fuel duty to make a “fairer system” for all drivers.

The biggest, most valuable properties could see costs increase if bands F, G and H are revalued and given a council tax surcharge, being dubbed a “mansion tax”.

Horsham, where one in four homes are in those bands, would be most affected, followed closely by Chichester, Wealden and Mid Sussex.