Harrogate MP highlights worrying impact of 'damaging cocktail of rising costs' on town's economy

Speaking in Parliament, Tom Gordon MP said that, while he welcomed the rise in the minimum wage, recognising that many people in Harrogate and Knaresborough were struggling to afford to live and work locally, the Government’s wider approach on the economy and taxation was placing unsustainable pressure on employers.

Businesses were not dealing with a single cost increase but a combination of rising wage bills, higher taxes, and mounting fixed costs, claimed Tom Gordon MP.

And he criticised ministers for what he described as a damaging “cocktail” of measures, including rising minimum wage costs, higher employer National Insurance Contributions, and soaring business rates.

“Businesses are being hit with a relentless triple blow from this government – rising minimum wage costs, higher employer NICs, and soaring business rates,” said the Harrogate and Knaresborough MP.

“Across Harrogate and Knaresborough, businesses have told me this pressure is simply unsustainable, a message that came through loud and clear at my recent Budget Business Breakfast with Harrogate Chamber of Commerce.

“The Government must change course now: cut business rates, scrap the National Insurance hike, and give our local businesses the lifeline they urgently need, before it’s too late.”

Mr Gordon is warning that the impact of rising costs for employers risked forcing businesses to cut jobs, reduce hours, or close altogether.

The rise in the minimum wage announced by the Government means the lowest-paid workers will get higher wages from April.

Those aged 18-20 will see the minimum wage rise 85p to £10.85 and over-21s will be paid £12.71, up 50p.

The Chancellor said the decision to scrap the two-child limit for Universal Credit would lift 450,000 children out of poverty.

Meanwhile, pub landlords have warned Chancellor Rachel Reeves of "dire consequences" if planned increases in business rates came into force in 2026.

In better news, the UK inflation rate fell last month more than expected to 3.2%.

The Bank of England has also announced a cut in interest rates from 4% to 3.7%.

But, overall, Britain’s economic performance remains "lacklustre".