Chancellor Rachel Reeves has just 'piled pressure on small businesses' with Budget claims Harrogate MP
Harrogate’s MP has accused the Chancellor of having “let down” businesses and people in the Budget.
Tom Gordon, MP for Harrogate and Knaresborough, slammed the Autumn Budget as another missed opportunity to deliver for local communities and businesses.
Mr Gordon had called for measures to boost growth and support high streets, including scrapping National Insurance rises for businesses, the reform of business rates and a cut to VAT.
But instead, the Liberal Democrat claimed, Rachel Reeves had heaped more pressure on small businesses wit hike taxes across the board and nothing substantial for hospitality, leaving high streets and town centres at risk of further decline.
"This Budget was a chance to deliver real change for communities like ours,” said Mr Gordon.
"Instead, the Chancellor has let Harrogate and Knaresborough down, piling pressure on small businesses, hammering high streets and hitting hardworking families with higher taxes
"While communities like ours are taxed to breaking point, we’re getting nothing back.
"No investment in local infrastructure, no progress on dualling the Knaresborough-York rail line and no improvements to the York ring road.
"The Conservatives left our economy in tatters but Labour is making the wrong choices.
"We need a plan that drives growth without punishing local businesses and families.
"Harrogate and Knaresborough deserve better.
“I will keep fighting for the funding and investment our community needs.”
While the Labour Government’s Budget included lower business rates, small restaurants remain worried about the immediate outlook thanks to rising wages and unchanged VAT.
One plus point was the introduction of permanently lower business-rate multipliers for 750,000 retail, hospitality, and leisure properties from April 2026, with transitional 40% relief available in 2025–26.
But the woes of the high street and hospitality were not helped by other measures announced – or not announced - by the Chancellor.
Labour costs: National Living Wage to rise to £12.71/hr in 2026, increasing staffing costs.
VAT: Standard 20% VAT for restaurants, pubs, and bars remains in place, with no targeted relief for the sector.
Concern for future: Rising costs, combined with partial business-rate relief, may put pressure on staffing, pricing and profitability.
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