Small business owners fear Labor’s upcoming autumn budget, which includes potential tax rises, could threaten their livelihoods.

Mickey Whiteman, 33, owner of RD1 Clothing, an independent menswear store based in Hastings, says increases in dividend tax and employers’ National Insurance (NI) contributions could be “devastating.” ” for small businesses, particularly those like yours that depend on dividends for their livelihood. family income.

Chancellor Rachel Reeves has warned that “difficult decisions” will be made in today’s Budget, as the Government seeks to plug a nearly £40bn shortfall in the nation’s finances. National insurance contributions for employers and dividends and tax changes have become some of the key areas of speculation. The fuel tax, which is a tax included in the price motorists pay for gasoline at the pump, could also increase for the first time in more than a decade.

Whiteman said: “The dividend tax increase will put further pressure on our already strained cash flow. It’s hard enough to compete against retail giants. “Tax increases on small businesses like ours would be devastating.”

As well as concerns about dividend tax, Mr Whiteman said increases in fuel tax and NI contributions would worsen an already difficult situation.

He said: “With half of our business operating online, a higher fuel tax would likely increase courier costs, an expense that is already significant and growing for us. Worse still, it will increase costs for our suppliers, making our stock more expensive.

“Trying to absorb these rising costs to avoid passing them on to our customers would squeeze our already tight margins, leaving us with difficult decisions to make.”

This is not just a local problem; It is national, with Simply Business research showing that one in four SMEs fear closure if trading conditions do not improve.

Bea Montoya, COO of Simply Business, underscored the seriousness of this budget for the small business community, saying, “The October 30 budget will be the clearest signal yet about whether hope, confidence (and the vote) ) of the small business community in the Labor Party The party was vindicated. Small businesses are desperate to know they are being heard.

“With our collective economic prosperity at stake, we urge the Chancellor to create the conditions for small businesses to thrive before it is too late. “We will all feel the benefit.”

Mr. Whiteman said RD1 Clothing has brought continued employment opportunities to the community. However, it fears that NI’s other contributions could limit its ability to recruit, especially its aim to attract young talent.

He said: “Increasing National Insurance contributions would be a big challenge for us. It’s already difficult to balance hiring more staff and keeping the business profitable.

“We want to continue to grow and provide local employment, but rising labor costs will slow that down.”

Whiteman is also eager for genuine support to boost the local economy. Pointing to the suspended “Cities Fund” investments that generated initial enthusiasm, he said: “Coastal towns like Hastings face unique challenges, particularly in attracting year-round tourists and ensuring the local community thrives.

“We still don’t know if it’s going to go ahead; It seems like a false hope. Our city needs more than promises to remain vibrant for locals and tourists alike.”

More than anything, Whiteman hopes for policies that protect small businesses, like RD1, that are the “backbone of local communities.” He argued that funds should come from high-profit corporations rather than independent companies.

He said: “We need specific support. Protecting small businesses and encouraging young people to start their own businesses would strengthen local economies and allow us to continue creating jobs and offering something unique.”

Whiteman, who co-founded RD1 with his wife and dreams of starting a family, said the current uncertainty has put his personal plans on hold. He explained: “For now, we are investing everything in RD1, hoping for a fairer future for small businesses like ours.”

The fall budget will be announced around noon today.