A significant number of businesses in the pet trade have grave concerns about the economic impact of the Chancellor Rachel Reeves’s recent Budget, according to a new survey by the Pet Industry Federation (PIF).
In the poll of members, 76% of respondents believed the budget is detrimental to the UK economy, with 68% expressing fears that it could lead to job reductions. Additionally, 70% of those surveyed indicated that the increased national minimum wage would force them to raise costs for customers. Furthermore, 24% of respondents stated they might need to limit staff growth and maintain steady wages to keep margins stable.
The survey also revealed that 84% of participants foresee a challenging business environment over the next 12 months, and 48% believe the budget will negatively impact their growth plans.
The majority of respondents employed between one and 10 staff members, categorising them as small businesses. Despite this, many were too large to benefit from some of the increased allowances announced by the Chancellor.
PIF chief executive Nigel Baker said: “The results of our survey are worrying but not entirely surprising given the scale of the increased tax burden that UK businesses will have to shoulder.
“The pet industry is known for its resilience, but even here, both customers and employees are likely to bear the brunt of the fallout, with increased costs and economic pressures likely to lead to higher prices for pet owners and potentially even limit job growth within the sector.”
PIF intends to raise these concerns in a letter to Ms Reeves.
