A Suffolk pubs group boss hopes a National Insurance cut and a big boost to the minimum wage announced in the chancellor's Autumn statement will boost customer confidence.
Philip Turner of Chestnut Group - which owns high-end pubs across Suffolk and the region - is "wavy lined" about the pluses and minuses of Jeremy Hunt's latest announcements today as businesses like his will take a hit from a big rise in the minimum wage.
That will go up from £10.42 for those aged 23-plus (£10.18 for 21 and 22-year-olds) to £11.44 - nearly 10%. Labour costs account for about a third of costs overall for the industry - which will mean it will hit pubs' bottom lines.
At the same time, National Insurance will go down from 12% to 10%.
The two measures combined will ensure customers have more money in their pockets - which in turn should help hospitality businesses.
Mr Turner welcomed an alcohol duties freeze and a continuation of a business rates cut for shops and pubs but admitted the size of the minimum wage hike was "a shock".
"I think it's the third highest ever," he said. "The main headline I suspect for us is the business rates. I think it was certainly a more realistic want than some of the other cuts around VAT which I think is wishful thinking on behalf of many people. I think it's the right thing to do for business."
This had taken away the noose that was hanging around the sector's neck, he said.
But he felt it was an election budget - aimed at voters not business.
"It's the same old story - businesses don't vote," he said.
But he added: "It's balanced. I think he's taken something away - the increase in minimum wage is good for society."
His sector employed many people he said, and these could work flexible hours to suit them. "It's going to cost us some money and we'll have t work out how to make that work."
He estimated that the minimum wage increase would add more than one per cent to his wages bill.
"We are a year off a general election. Minimum wage and cutting National Insurance - the headline items - are affecting people who vote. Labour is 20 points ahead in the polls."
The chancellor had given something away by keeping the status quo with the temporary rates reprieve, he said.
"Ultimately at the end of the date they have done what you would expect them to do which is court voters."
Overall, he felt the statement gave a positive message.
"We need people to feel positively disposed. We are obviously in the discretionary spend market. We don't want people to cut back on discretionary," he said.
"I want people to go into the New Year feeling positive - that's my primary objective."
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