The Pet Industry Federation (PIF), has revealed the results of a survey among its members in response to the recent UK budget. The results highlight significant concerns about the economic impact on small businesses within the pet industry.
A substantial 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 1 and 10 staff members, categorising them as small businesses. However, many of these businesses were, too large to benefit from some of the increased allowances announced by the Chancellor of the Exchequer, Rachel Reeves, in her budget designed to mitigate the effects of the tax increases.
Nigel Baker, Chief Executive of PIF, 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.”
In light of these findings, PIF plans to write to Ms Reeves, representing the concerns of many small businesses in the UK pet industry. PIF is committed to supporting its members through these challenging times by offering advice, fostering connections, and providing discounts to help improve their bottom line.
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Dan Everett
Jo Abraham