Shrewsbury town centre businesses gathered last month for a face-to-face question and answer session with Dr Julia Buckley, MP for Shrewsbury.
The event, held at St Vincent Shrewsbury on Thursday 23rd April, was organised by Shrewsbury BID to give local business owners the chance to raise concerns and hear the MP’s responses in person. Questions were submitted in advance and put to the MP by BID Executive Director Seb Slater.
Topics included rising employer national insurance contributions, the national minimum wage, hospitality VAT, day-one statutory sick pay, and the future of regeneration funding for the county.
It was the first in a planned series of events through which Shrewsbury BID aims to connect members with the councillors, portfolio holders and elected officials whose decisions shape the town centre.
Seb Slater, Executive Director of Shrewsbury BID, said: “As we continue to represent our members’ interests to local and national government, it is vital we hear from them directly about the challenges they face and what they need from their elected representatives. Events like this are one way we can make sure their voices are heard.”
Rising business costs
The most immediate concern for many members present was the combined effect of increases to employer national insurance contributions and the national minimum wage, as well as the introduction of day-one statutory sick pay.
Julia Buckley explained that the NI changes were designed to close a loophole that had allowed some large employers to avoid contributions on part-time and zero-hours contracts, but acknowledged that smaller businesses had been caught in the crossfire.
“I would say it is a clumsy policy,” she said. “Smaller businesses are coming into scope, and you are right that it has brought a lot of pressure. The businesses I probably worry about most are those in the middle who want to grow but find it is not economically viable to do so.”
The VAT registration threshold – currently set at £90,000 – also came under scrutiny, with one member describing businesses deliberately turning away trade to stay below the limit. The MP confirmed the issue is under consideration and said the case for a tapered approach rather than a hard cliff edge was being made to government.
Hospitality under pressure
Pub and restaurant owners challenged the MP on VAT rates, pointing out that hospitality VAT in Ireland is 13%, Spain 10% and Germany 7%, compared to 20% in the UK.
Julia Buckley said she has joined a cross-party group of MPs working on the issue, with proposals submitted to the Treasury and the Department for Business. A parliamentary colleague is also bringing forward a Private Members’ Bill on minimum alcohol pricing, aimed at narrowing the gap between supermarket and pub prices.
“If you go in with one ask it is win or lose,” she said. “If you go in with multiple asks, you have got more chance of getting some movement. I am going to call that one work in progress.”
On day-one statutory sick pay, introduced through the Workers’ Rights Act, the MP accepted that the policy sat uneasily with the seasonal and flexible staffing needs of hospitality businesses, but did not set out specific plans to address the tension. She noted that employers could protect themselves with a probationary period for new starters.
Continuing to give businesses a voice
Shrewsbury BID has produced a written record of the questions asked at the event and the MP’s responses, which was distributed to its members.
A follow-up event is planned for this summer – Meet Your Councillor – at which members will have the opportunity to put their questions to Cllr Alex Wagner, Deputy Leader of Shropshire Council and Portfolio Holder for Economic Growth, on local issues including planning, parking and town centre management. The date is to be confirmed; invitations will be sent to BID members one month in advance.
“We will keep holding these events because our members deserve to hear directly from the people making decisions that affect their businesses – and the people making those decisions deserve to hear directly from them,” said Seb Slater.