In 2025, small businesses are calling for greater support as they face rising operational costs. One notable example is a shellfish company founded by Gary and John Hodgson in 2002. Based in Holderness, the company sources its shellfish from local waters and distributes its products across the UK and to markets in Europe and Asia.
Challenges Facing Small Businesses
The Hodgson brothers highlight significant financial pressures. Gary revealed that their monthly expenses for utilities reached over £33,000. Of this total, electricity costs alone accounted for £22,500, which included £1,100 due to a climate change levy intended to encourage energy conservation.
Increased Operational Costs
- Utilities: Over £33,000 monthly
- Electricity charges: £22,500
- Climate change levy: £1,100
- Other rising costs: National Insurance, minimum wage, transport
According to Gary Hodgson, every aspect of their financial operations has seen a hike. He emphasized, “There’s not a single cost on the balance sheet that hasn’t increased.” These escalating expenses are putting immense strain on small enterprises.
Concerns Ahead of the Budget Announcement
As the government prepares to present its budget, scheduled for Wednesday, there is growing apprehension among small business owners. Mr. Hodgson expressed concern regarding the current administration’s grasp on public finances. He stated, “I’m a little bit concerned because, my personal feeling is, at the moment this government doesn’t have a grip on public finances.”
Small businesses like the Hodgson brothers’ shellfish company are advocating for enhanced support in the upcoming 2025 budget. They hope that the government will acknowledge the value they add to the economy and provide necessary relief amidst these challenging circumstances.
