Government ‘Cocktail of Costs’ Pushing Local Businesses to the Brink, Warns Tom Gordon MP

Tom Gordon, Liberal Democrat MP for Harrogate and Knaresborough, has warned that local businesses are being pushed to breaking point by a ‘triple hit’ of rising costs driven by higher minimum wages, increased employer National Insurance contributions, and soaring
business rates.

Speaking in Parliament, Tom said that while he welcomes the rise in the minimum wage, recognising that many people in Harrogate and Knaresborough struggle to afford to live and work locally, the government’s wider approach is placing unsustainable pressure on
employers. Businesses are not dealing with a single cost increase, but a combination of rising wage bills, higher taxes, and mounting fixed costs.

He criticised ministers for what he described as a damaging “cocktail” of measures, warning that the combined impact risks forcing businesses to cut jobs, reduce hours, or close altogether. Local employers, particularly in the hospitality sector, have told him these
pressures are simply not sustainable, a message reinforced at his recent Budget Business Breakfast with Harrogate Chamber of Commerce.

Tom has repeatedly called on the government to change course and provide better support for businesses, renewing those calls ahead of the Budget. He warned that without urgent intervention, local businesses and the jobs they support will pay the price.

Commenting, Tom said:

“Businesses are being hit with a relentless triple blow from this government – rising minimum wage costs, higher employer NICs, and soaring business rates."

“Across Harrogate and Knaresborough, businesses have told me this pressure is simply unsustainable – a message that came through loud and clear at my recent Budget Business Breakfast with Harrogate Chamber of Commerce."

“The government must change course now: cut business rates, scrap the National Insurance hike, and give our local businesses the lifeline they urgently need, before it’s too late.”