'I might have to let staff go after Budget NI hike'

The boss of a toolmaking firm has said he could consider cutting staff after increases to national insurance (NI) and wages were announced in the Autumn Budget.

Chancellor Rachel Reeves announced the legal minimum wage would rise and employers would pay more in NI contributions.

Pearson Precision Toolmakers, in Hereford, supplies firms like Jaguar Land Rover, but managing director Conrad Pearson said he might have to scale down the business.

"If it leads to [letting someone go] then we will have to if the economy dips any more. We will seriously have to consider it because we can't pay all the wages without having the work," he said.

"With the increase in minimum wage for the third year on the run, that's going to impact us... it is going to be a very expensive April for us."

Mr Pearson said the company was already grappling with a dip in the economy and the previous wage hike.

"Some decisions we're thinking about are around staff and if we want to grow any more, I don't really know," he added.

Elsewhere in the city, Dani Houghton owns Sneakysquid gift shop at the Butter Market and said she had been told by suppliers their prices would go up in response to the chancellor's announcements.

"I think prices of things are going to go up, I've already received four emails from suppliers that their prices are going to have to increase because of the Budget," she said.

"[That] means that there is going to be a knock on effect and I'll have to put up my prices too."

Companies will pay NI at a rate of 15% on salaries above £5,000 from April, up from 13.8% on salaries above £9,100.

Smaller businesses have been offered some exemptions, but businesses overall also face having to pay higher minimum wages and higher business rates.

Butcher Ralph Lloyd has had his shop, Malies Bros, in the Butter Market for 40 years.

He remembers when business "was booming" as the high street would be packed with customers but over time he has had to let staff go to keep afloat.

"I'm here on my own today trying to make ends meet, which I can...I'd love an extra pair of hands but I won't really be able afford it," Mr Lloyd said.

"You're never going to please everybody that's impossible but if you're a worker it's got to be better, not so much if you're an employee."

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