The increase in National Insurance payments announced by the government will put increased pressure on small pet businesses already struggling to survive. That’s the view of Ravi Sharma, director of leading wholesaler Vital Pet Group.
“The issue with this proposed increase is it will increase the burden on the pet businesses who have already been hit hard by the pandemic and Brexit,” said Ravi.
Larger pet suppliers and retailers will also find it challenging to meet the extra costs.
Ravi added: “It will make recruitment of staff more expensive, but also affect those who plan to return after furlough ends.
“With the furlough scheme and business rates reliefs shortly ending, the cumulative effect of freezing of allowances on incomes and pension pots, an increase in corporation tax, and an increase in council tax, the changes of increases to the national minimum wage and national Insurance contributions to fund social care will put many smaller pet stores under pressure.
“Here at Vital we’ve made a key appointment in Harvey Lees, our head of commercial, buying and procurement, who will be putting together promotions that work for stakeholders across the industry, to help combat these challenges.”