Devon businesses are urging Chancellor John Healey to reduce the cost of employing staff in his first Budget on 28 October 2026. One publisher says he is holding back from filling two positions because of employment costs.

Key Takeaways

  • Links Publishing says hiring costs have delayed plans to fill two positions.
  • Some Devon employers want National Insurance contributions reduced, while hospitality managers are seeking a VAT cut.
  • The Treasury says it is supporting businesses, but tax decisions will be set out at fiscal events.

Devon businesses put hiring costs in focus

Tim Randell, who runs Links Publishing in Tavistock, said he wanted to expand but was holding back from hiring for two roles. He pointed to taxes, the living wage and other expenses as pressures on employers.

At the Devon Business Show in Plymouth, Michelle Bunker of WGP Maintenance called for employer National Insurance contributions to start falling. Kevin Miller, who runs Apex HR in Plymouth, also sought tax relief to reduce the cost of employing people.

The 2024 Budget raised the employer National Insurance rate to 15% on salaries above £5,000 from April 2025, from 13.8% on salaries above £9,100. The legal minimum hourly wage for workers aged over 21 also rose from £11.44 to £12.21 in April 2025.

ItemDetails
Employer National InsuranceFrom April 2025, 15% on salaries above £5,000, up from 13.8% above £9,100.
Minimum wage for over-21sRose from £11.44 to £12.21 an hour in April 2025.
Hospitality VAT requestCampaigners seek a cut for pubs and restaurants from 20% to 10%.

Hospitality managers seek VAT reduction

Hospitality businesses also want relief. Melanie Williams, events manager at Plymouth’s Duke of Cornwall Hotel, said customers’ finances were strained and suggested the government revisit VAT.

Pete Adams, general manager of the Moxy Hotel in Plymouth, supported a cut for the sector, saying it could allow businesses to pass savings to customers. Hospitality campaigners have sought a reduction in VAT for pubs and restaurants from 20% to 10%.

Treasury points to existing support

Healey has not ruled out tax increases after acknowledging that government borrowing costs are at historic highs. The government says easing the cost of doing business is one of the chancellor’s five priorities.

A Treasury spokesperson pointed to business rates cuts, a cap on corporation tax, £4.3 billion of support to limit bill rises, and employer National Insurance relief when hiring under-21s and apprentices under 25. The spokesperson said tax decisions are for the chancellor to set out at fiscal events.

Next milestone

Healey is due to deliver the Budget on 28 October 2026.

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