Jesmond business owners and industry experts have cautiously welcomed what the Chancellor of the Exchequer, Jeremy Hunt, set out in the government’s latest Autumn Statement on November 22nd. However, they’re keen to see further action.

The statement unveils financial plans for the year ahead, directly impacting every household, business and public service across the UK.

The main changes likely to affect Jesmond’s businesses included:

• An extension to the government’s 75% discount on business rates for retail, hospitality and leisure businesses for a further year.
• Full expensing for businesses has been made permanent, meaning companies can save £250,000 in tax for every £1 million that they invest.
• The National Living Wage has been increased to £11.44 an hour in a bid to encourage more people to find work.
• Class 2 National Insurance has been abolished, saving the average self-employed person £192 a year.

Rachel Anderson, assistant director of policy at the North East Chamber of Commerce (NECC) told JesmondLocal that the Autumn Statement contained “something to cheer” if you’re a small business in Jesmond.

Rachel said that the government had successfully recognised that hospitality and retail sectors were coming under “serious stress”.

According to NECC, the continuation of the 75% discount on business rates is one feature of the budget should be welcomed by small hospitality businesses in Jesmond.

However, Anderson feels that a full reform of business rates is what’s truly needed. In 2019, the Conservative party promised to carry out a fundamental review of the system as well as reducing business rates in the long term.

The current discount scheme is set to run out in April 2025 with one business owner, Payal Gandhi, worried that this could spell the end of her business.

Mumbai Cafe, a new food establishment on Clayton Road that has taken over the former site of Country Whey, opened just four months ago but Payal is already worried for the future of the company.

Gandhi admitted that as a new start-up, “any increase will affect us a lot as we are still burning cash” – and the living wage reform would be one of those that could affect business operations.

Gandhi told JesmondLocal that in order for businesses like hers in Jesmond to survive, she’d like to see more extensive relief on business rates, National Insurance and energy costs.

Another local business owner, Gill Reeve, who runs Dene’s Deli, welcomed the business rates discount extension.  “It makes a huge difference to us,” she said.

Reeve added she hoped the government would “stand up to the energy giants” and wind back increasing costs.

“In my 30 years of business, increased costs in the last two years have exceeded anything I’ve previously experienced,” she said.

The NECC’s Anderson told JesmondLocal that there was a lot of “tinkering round the edges” – but there is definitely more that can be done for small businesses in Jesmond.

To view the government’s statement in full, click here.