‘I see utter devastation’: Mike Parry makes bleak claim about Labour’s tax raids as Rachel Reeves hits small businesses with ‘£32k hammer blow’
Broadcaster Mike Parry is fearful of “utter devastation” on the high street with Labour’s tax raids set to hit small businesses.
It comes as Tory research warns Rachel Reeves’ Budget will hit the average shop with £7,576 in extra employer National Insurance contributions and £3,091 in higher business rates.
For a small chain of three shops, this burden will reach a total of £32,001.
Speaking on GB News, Parry laid bare his personal despair at the tax climb.
“It’s now virtually impossible for a small shop on the high street employing two or three people to make any sort of profit”, he said.
“They make a loss. Therefore, I see utter devastation on the high street of small businesses going down.
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“The report of £32,000 on a medium-sized business, that’s £10,000 on a small business.
“Even people in huge businesses – like the boss of Iceland, he supported Labour before the election and has now turned. He is of the view that actually, Labour could have been misleading in terms of what it was going to do for business.”
Labour activist Chris Worrall pushed back on Parry’s furore – claiming the Government are actually making positive moves to support small businesses.
He said shoplifting had effectively been legalised under the previous Tory government, but Home Secretary Yvette Cooper has immediately gone about seeking to clamp down.
“The one thing small business owners will care about is the highest level of shoplifting this year”, he said.
“You could get up to £200 and the police wouldn’t even do anything. Yvette Cooper has got new community officers in, contactable, named.
“Shop owners now have someone to call when someone burgles their shop.”
Labour’s Chancellor Rachel Reeves visited Leeds Corn Exchange on Friday ahead of Small Business Saturday, discussing new support measures with independent retailers.
The visit focused on changes announced in Labour’s first budget in 14 years, including adjustments to National Insurance contributions.
Reeves highlighted that businesses will benefit from an increased employment allowance of £10,500, meaning many smaller firms won’t pay any National Insurance next year.
The government has stated that approximately 865,000 employers will be exempt from NI payments in the coming year due to these changes.
A new growth service will also launch in 2025 to help small and medium-sized businesses access government support under one roof.
Small business owners expressed concerns during the Chancellor’s visit about current economic challenges.
Deborah Bellamy, owner of Hidden Wardrobe, told Reeves: “We’ve found it difficult – we’ve got rising costs, we’ve got rising product costs, we’ve got rising costs with minimum wage.”
Sonia Pounder, who opened flower shop Attic in Bloom in 2023, voiced worries about consumer spending after Christmas.
“We’re not just here for one month, we’re here for twelve,” Pounder said, describing October as “particularly disappointing.”
In response, Reeves urged businesses to examine the budget details carefully, saying: “The smallest businesses will benefit from those changes because we recognise the importance of small businesses and their needs.”