'People have a bit more money in their pockets': Cork shop owner hopes budget will boost business
Philip Hurley, owner of Wild Side Sports, Bandon, Co Cork, said he expected his costs to increase following the budget as a result of changes to minimum wage.Â
The budget will put more money in people’s pockets but “you are not guaranteed” that it will end up being spent in your business and help offset the increasing costs, a Cork retail business-owner has said.
Speaking to the , Philip Hurley, owner of Wild Side Sports in Bandon, Co Cork, said he was optimistic for next year following the budget — as people can expect more money in their pockets — but as a business-owner he feels like there wasn’t much in it for him.
From income tax changes, cuts to the universal social charge, and more energy grants for this winter, the budget made a number of changes to put more money in people’s pockets.
Mr Hurley said he could certainly see this being a boon to people and the economy but you “are not guaranteed that that necessarily ends up in our pockets, in our business books”.
For business-owners like Mr Hurley, the budget did not offer the same level of support last year’s did, while at the same increasing their costs.
The main issue for Mr Hurley is that the national minimum wage is due to increase 80c from January 1 to €13.50 an hour. He said regardless of whether people are already on the minimum wage or not, this change will cause all other salaries to increase as well.
He said people’s “expectations will follow” the minimum wage increase.
“That cost is guaranteed and it is continuing to only go one way. I would say any benefit that was possibly there for me, personally as a business-owner, has probably been eliminated,” he said.
In addition to the increase to the minimum wage, business-owners like Mr Hurley also have to deal with an increase to the number of sick days as well as the introduction of the pension auto-enrolment scheme expected next year. All of which will add to costs.
Mr Hurley also pointed out last year’s budget contained the Increased Cost of Business Scheme, which provided a grant for businesses based on the level of commercial rates they paid. As part of last year’s budget, the Government signed off on a package of €257m for the grant.
However, there is not a similar support in this year’s budget.
Public Expenditure Minister Paschal Donohoe did outline an energy subsidy scheme, which he said was worth €170m and would provide support for 39,000 firms. He said the scheme recognised the impact of rising energy costs on hospitality and retail businesses.
Details of the scheme have yet to be released.
When asked about his outlook for his business next year, Mr Hurley said: “I’m probably more confident that there is probably a better chance of improved turnover because people have a bit more money in their pockets but whatever increase there might be in turnover I don’t know if that is going to offset the increase in costs”.
“The reality is that next summer we just have to make do with less because you are not guaranteed that your turnover is going to go up and you are guaranteed that it is going to cost more,” he added.
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