‘WHERE’S MY BREATHING SPACE?’ Northern Pie Boss Who Backed Andy Burnham Delivers Brutal Verdict on Labour’s Budget as Tax Hikes Leave His Business Facing Thousands in Extra Costs
A northern business owner who once put his faith in Andy Burnham has delivered a furious reality check to Labour, accusing the Government of leaving struggling small businesses behind despite promising them much-needed financial breathing space.
Paul Bowen, the former The Apprentice contestant who runs two pie shops in Chorley, Lancashire, did not hold back during an emotional appearance on ITV’s Good Morning Britain. Having initially welcomed the prospect of Burnham taking over from Keir Starmer, Bowen now fears the latest Budget has offered little meaningful relief to businesses like his.
His central complaint? He is being hit with rising wages, crippling energy bills and soaring supplier costs, yet finds himself excluded from the business rates relief announced by Chancellor John Healey.
And his question to the Government was pointed: ‘Where’s my breathing space?’
‘I THOUGHT HE GETS IT’: BOWEN’S HOPES FOR BURNHAM HAVE BEEN SHAKEN
Bowen admitted he had initially felt optimistic when Burnham took over from Starmer.
He believed the Labour figure’s northern roots meant he would understand the pressures facing ordinary business owners and struggling high streets.
Speaking on GMB, he recalled: ‘I was really positive. Andy’s a northerner, and I thought, “he gets it. He gets it, he’s listening”.’
That optimism, however, quickly collided with the reality of the Budget.
Healey had promised families and business owners some much-needed breathing space. But Bowen says the support being celebrated by the Government simply does not extend to him.
Because he operates two shops, he does not qualify for the business rates relief.
‘I don’t qualify for the business rates, I don’t qualify for that because I’m multi-site. I’ve got two shops. So I don’t qualify for that,’ he explained.
For a business already struggling with mounting overheads, being excluded from the headline support measures has left him questioning who the Government is actually helping.
MINIMUM WAGE RISE COULD ADD HUNDREDS TO HIS WEEKLY BILL
Business rates are only part of Bowen’s growing financial headache.
The latest increase in the minimum wage is expected to add another £700 a week to his wage bill. While he made clear that he supports paying employees properly, he warned that businesses cannot keep absorbing increases without consequences.
‘The minimum wage has increased, which we all, every business owner… I’m not saying that we shouldn’t pay staff,’ he said.
‘What I’m saying is we can’t afford to pay them.’
And the pressure does not stop with wages.
Bowen revealed that his supplier bills currently stand at around £20,000 to £30,000 every week. With suppliers expected to pass on additional costs, he fears another substantial hit to his finances.
He explained: ‘My supplier bill’s around £20,000 to £30,000 a week.
‘That will be 10 per cent. So £2,000 to £3,000 a week. So that’s £4,000 a week I’ve got to find.’
He estimated that this additional expense would be equivalent to the cost of producing around 20,000 to 30,000 pies every week.
For a business operating on tight margins, the numbers are becoming increasingly difficult to absorb.
NATIONAL INSURANCE AND ENERGY BILLS ARE PUSHING HIM TO THE EDGE
Bowen has already experienced the consequences of Labour’s previous tax decisions.
Last month, he revealed that soaring employer National Insurance contributions introduced under former Chancellor Rachel Reeves had forced him to close one of his pie shops.
His public intervention attracted a direct response from Burnham, who acknowledged the situation and expressed regret that Bowen had reached the point of shutting his doors.
‘I am listening and I’m sorry it has got to the point that you need to close your doors,’ Burnham said.
But Bowen’s latest warning suggests the financial strain has not eased.
He told GMB that National Insurance costs and the energy crisis were continuing to cripple his business, while the latest Budget had offered him no meaningful relief.
‘My week has gone up, I’ve got no business rates, I’ve got no relief. The National Insurance is crippling me. The energy crisis is crippling me,’ he said.
The consequences, he warned, could soon reach customers.
With costs continuing to rise, he expects to have little choice but to increase prices, potentially driving customers away while leaving his business with even smaller profits.
‘MY ONE-YEAR-OLD GIRL… I’M TAKING A PAY CUT’
Perhaps the most personal moment came when Bowen revealed the sacrifices his family was already being forced to make.
He said he would have to take a two per cent cut in his own pay, meaning the financial pressure was no longer confined to the business itself.
‘I’m going to have to put my prices up, customers are going to get mad. I’m going to get less profit…
‘Me as a family, as a director, I’ve got to take a 2 per cent cut. So my family, my one-year-old girl… I’m taking a pay cut. My business is taking a pay cut.’
His frustration was unmistakable as he questioned how the Government could describe its Budget as providing breathing space when his own financial position was becoming more precarious.
Turning directly to the camera, he issued an emotional appeal to the Chancellor.
‘John Healey, if you’re listening, where is my breathing space? You promised the UK breathing space. Where is it?’
WHAT DID THE BUDGET ACTUALLY OFFER BUSINESSES?
The Budget included several headline measures intended to ease financial pressures on households and high street businesses.
Among them:
- £100 energy bill support: Around 20 million households in council tax bands A to D will receive support, but businesses will not qualify for the payment.
- Business rates relief: An increase in gambling taxes will help fund relief for high street firms.
- 70,000 businesses removed from business rates: Healey said the changes would mean half of Britain’s shops, restaurants and gyms would no longer pay business rates.
- Higher taxes on banks: The Chancellor introduced a temporary tax increase on banks, although critics warned that this could push up borrowing costs.
However, the Institute for Fiscal Studies criticised the Budget, arguing that it contained ‘a raft of fiddly measures but very little that will move the dial on growth’.
Critics also accused the Government of failing to take meaningful action to tackle the rapidly growing welfare bill.
STARMER DEFENDS THE BUDGET AS BUSINESS OWNERS QUESTION THE SUPPORT
The Prime Minister was challenged about complaints from businesses during a visit to the Midlands.
Defending the Government’s approach, he pointed to the 70,000 businesses being removed from business rates altogether, arguing that the changes would provide support for high streets across the country.
‘We have done what we can do to support people: 70,000 businesses – smaller businesses on our high streets – have been lifted out of business rates altogether, and that will help high streets across the country,’ he said.
Starmer also insisted that the wider economic picture was improving.
He claimed the British economy was outperforming forecasters’ expectations, with the growth forecast upgraded for the year.
He added that the International Monetary Fund had identified Britain as the standout nation for deficit reduction, while acknowledging the difficult global environment and the impact of the situation in the Middle East.
‘But I think people should look at what the Chancellor said yesterday, see a country that has got a platform of stability in the economy. We’re beginning to defy those expectations, and I’m confident that we will go from strength to strength from here,’ he said.
Yet for Bowen, those broader economic assurances do little to address the immediate financial reality facing his business.
Having already closed one shop, absorbed higher employment costs and watched energy and supplier bills climb, he is now warning that the latest Budget has left businesses like his with an increasingly difficult choice: raise prices, accept smaller profits or risk further damage.
