Independent businesses across Liverpool are hoping Chancellor John Healey will ease their biggest financial concerns as he delivers the Autumn Budget today, with many calling for VAT reductions, business rates reform and a reversal of employer National Insurance increases.
While the public will be watching to see how the Budget affects the cost of living, household bills and take-home pay, small business owners have their own set of priorities for the months ahead. The ECHO spoke to several of the city's independent traders to find out what they want from the announcement.
Calls for VAT reduction
Ansil Kharel, 23, opened Momo's restaurant on Lime Street in May 2022 when he was just 19. The Nepalese restaurant, located above the Sanctuary Craft Bar, has quickly become known as a "hidden gem" serving authentic cuisine to locals and tourists.
Ahead of the Budget, Kharel told the ECHO: "What I'd like to see is little independents like me being supported by even just a 5% VAT reduction, or any of these crazy ridiculous taxes getting reduced, because as a small business, I don't put the cost onto the customer. I put the cost on myself."
The current UK VAT rate stands at 20%, and businesses must pay VAT if their taxable turnover exceeds £90,000 over a 12-month period. Kharel added that a VAT cut could help businesses expand: "If VAT gets reduced from the budget, then we could focus on bigger things, like expanding the business. A business that's struggling right now, because they're paying their little bit extra tax, maybe they could stay afloat."
Fiona Hornsby, who runs several Liverpool pubs with her husband Dominic, including the Bridewell, Denbigh Castle, The Pen Factory and The Swan on Wood Street, also backed a VAT reduction. She said: "I think everybody in hospitality would like the VAT reduction, because you pay it whether you make a profit or not, ultimately. That's the one that would help the most." However, she added: "I just can't see them doing it. If they do any VAT reduction, it would only be on food sales."
Business rates overhaul sought
Business rates, a direct tax paid by businesses including shops and pubs based on the rental value and size of a property, are another key concern. Hornsby said she has seen a dramatic change in her rates: "When we bought the Denbigh Castle in 2020, the business rates were £14,000. They're now £48,000. But, the pub's no bigger. You've spent a load of money, you've created a load of jobs, and then you're penalized for making a business successful."
She noted that a manifesto promise to overhaul business rates has not yet materialised: "I know he's offered a 20% reduction next year, but we don't know whether that's off this year's, because this year's were reduced a bit, so are they going to go up and then come back down again? There's not really been any clarity around that."
Amanda Tisdale, who has run Wow Flowers on Picton Road in Wavertree with her sister Lorna for over two decades, currently receives business rates relief due to the small size of her business. She is concerned that could change: "People are saying that the threshold is going to change. Which is going to be a nightmare for small businesses, little high street shops, if that changes."
National Insurance and import taxes
Following the rise in employer National Insurance contributions announced in the Autumn Budget of 2024, which came into effect in April 2025, some businesses are hoping for a reversal. Hornsby said: "The 2% they put on the employer's National Insurance last year, that would be lovely if they took that off. If we got any of those reductions, we would be able to employ more staff, because our headcount's gone down because of the increase in everything."
Iain Tyrer, who has owned his self-named barber shop on Aigburth Road for over 30 years, criticised the decision: "I think the government's decision to raise National Insurance was a really bad one. But then barbers just have to think outside the box: how can I achieve this and still keep people employed? The only way to do that is to make them self-employed."
Dalip Matta, who runs the family business Matta's on Bold Street with his brother Deepak, highlighted the impact of rising import taxes on overseas goods. The store, which has been trading for over 40 years, serves a wide variety of international groceries. Dalip said: "I think us being able to get more produce from Europe would help because obviously being an international food store we've got stuff from everywhere. Hopefully there's going to be less taxes on European stuff."
To manage rising costs, Dalip said he has been working more hours instead of raising prices: "Instead of putting prices up, I've been coming into work a lot more these days just to be more hands on, to cut costs down on wages. We're all doing extra work just to keep the costs down."
