OVER the last few weeks, I’ve spent time with two brilliant local businesses that reflect the very best of what Central Devon has to offer.
One is a centuries-old country pub with deep roots in our rural community. The other is a modern cycling hub that’s helping meet the growing demand for sustainable travel.
They’re very different businesses - but both are being squeezed by Labour’s Jobs Tax.
The Ley Arms in Kenn is a quintessential thatched pub dating back to the 13th-century, tucked away just outside Exeter.
It’s family-run and employs around 30 local people. Like many hospitality businesses, they were hit hard during the pandemic.
But through determination and community support, they’ve bounced back - serving great food, hosting weddings and events, and acting as a vital social hub for the area.
When I visited recently, the owners spoke candidly about the fresh challenges they now face.
Rising costs for energy, supplies, and wages are already creating pressure - but the extra burden of Labour’s rise in employer National Insurance is making things significantly worse.
Every additional pound they’re forced to pay in tax on employment is a pound that can’t be spent investing in the business, hiring more staff, or increasing pay.
At a time when small businesses need space to grow, Labour’s Jobs Tax is making life extremely difficult.
Then there’s Partridge Cycles, just outside Crediton. One of Devon’s largest bike shops has long been a destination for families and cycling enthusiasts.
Now, they’ve added a brilliant new cafe to the site, making it a real hub for locals and visitors alike.
They sell everything from e-bikes to kids’ bikes, offer expert repairs, and run events for the community.
But they too are feeling the effects of this new tax.
When I spoke to the team, they made it clear that the increase in employer National Insurance is making it harder to take on new staff or invest in the next stage of their growth.
That’s a loss for them and also a loss for our local economy.
This is the reality of Labour’s Jobs Tax. It adds £25 billion to the cost of employing people nationwide and is already contributing to job losses - over 25,000 since Labour’s first Budget, equivalent to one every nine minutes.
That’s not just bad economics - it’s a betrayal of working families and small business owners who were told Labour wouldn’t raise taxes.
Here in Central Devon, we depend on our small and medium-sized businesses - from rural pubs and farms to independent retailers and care providers.
These businesses are the backbone of our economy, our communities, and our way of life.
Labour’s decision to raise employment taxes isn’t just short-sighted - it’s part of a wider pattern of economic mismanagement, where ambition is penalised, and enterprise is far from celebrated and encouraged.
As your MP, and as Shadow Chancellor of the Exchequer, I’ll continue to stand up for our local businesses - and fighting against this damaging Jobs Tax, before it does even more harm to Central Devon.
Mel Stride
MP for Central Devon
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