Despite the bustle of Christmas shoppers in Leeds, small businesses are sharing their concerns about the upcoming challenges they face.

In Labour’s first budget in 14 years, chancellor Rachel Reeves raised employer National Insurance contributions and announced minimum wage increases.

Traders in the city’s Corn Exchange had the opportunity to express their worries directly with Reeves, Leeds West and Pudsey MP, on Friday.

‘We’re not just here for one month, we’re here for twelve,” one warns.

Deborah Bellamy, who runs the Hidden Wardrobe clothing shop, has noticed a growing trend of “price conscious” shoppers in the last couple of years who select single items rather than three or four.

‘We’ve found it difficult – we’ve got rising costs, we’ve got rising product costs, we’ve got rising costs with minimum wage,” she says.

“We’ve got to the stage now where we can’t employ the people we want to employ so I’ve got to work longer hours.”

The shift to online shopping has also affected the amount people willing to spend in her store, she says.

The public is being urged to show support for small businesses as part of an annual event on Saturday promoting the sector.

Organisers say Small Business Saturday could provide a “lifeline” for smaller companies in the important run-up to Christmas.

The campaign group said the public is expected to direct up to a fifth of its Christmas spending towards independent firms, meaning the small business economy could tap into around £4.4bn nationally.

Sonia Pounder opened flower shop Attic in Bloom in 2023 and is feeling uncertain about the current economic climate.

She says Christmas is always a busy time of year for flower shops, but is worried how much disposable income people will have to spend on “extras” in the new year.

“We’re not just here for one month, we’re here for twelve,” she says.

“We had a particularly disappointing October and it’s scary.”

The florist accepts that it is “difficult to say flowers are something you need”, with shoppers prioritising family essentials.

Ms Pounder is braced for a “challenging time” after Christmas and would like to see the chancellor address high business rates faced by many shop owners.

Reeves, who spent time talking to businesses in the Corn Exchange, attempted to reassure shop owners about the support they will gain from the government.

“Look at some of the detail in the budget, because the smallest businesses will be paying less or no national insurance because of the changes I announced,” she says.

“We increased the employment allowance to £10,500 and so no national insurance will be paid until the bill gets to £10,500.”

She continues: “I met one small business today who employs three people and she didn’t know about those changes.

“It means next year she is unlikely to pay any national insurance at all whereas this year she is paying national insurance.”

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