FAMILY run businesses in Witham say they are facing an uphill battle to stay afloat with National Insurance and business rate increases.
Prime Appointments and PFE Express Ltd have spoken out about the pressure their firms are facing.
They met with Witham MP Priti Patel to express their fears over the hanges to the business property relief (BPR) scheme and the newly introduced National Insurance jobs tax.
Previously, the relief scheme allowed family businesses to plan for future investment and generational transitions without incurring significant tax liabilities.
Prime Appointments, a leading recruitment firm established in 1992, employs around 300 people across its sites in Witham and Bury St Edmunds.
Managing director, Robyn Holmes, said it needed to be ensured "family businesses and workers all get the right deal."
She said: "We are imploring the current government to look at the needs of a 'flexible work force' to support all types of industries and the everchanging needs of their business demands."
The Office for Budget Responsibility estimates changes to National Insurance will cost businesses an extra £800 per employee.
Ms Patel said: “Small to medium-sized, family-run businesses like Prime Appointments are the backbone of our economy. The Labour Government’s budget has eroded business confidence and is forcing many family firms into financial distress.
"The economic stagnation we are witnessing is a direct result of these misguided policies. Labour must urgently reverse course.”
PFE Express Ltd employs 140 people in Witham and is investing significant capital into a new warehouse facility on the outskirts of the constituency.
The new warehouse, which is on track to be completed this spring, will support dedicated specialist jobs and provide a significant boost to the local economy.
The business provides bespoke international freight forwarding solutions that aims to streamline logistical operations, boost efficiency and provide significant savings on costs to partnered businesses.
Ms Patel added: “It’s so disappointing to hear the continued frustrations of family-run businesses, many of which have been operating in the Witham constituency for decades.
"Labour simply does not understand the damage the upcoming Business Property Relief changes will do to jobs and opportunities for local people, not to mention the impact on local economies.
"On the back of these changes many businesses may consider closing up shop, and for those lucky enough to not be in that position their economic prospects will be severely damaged. Businesses like PFE Express should not have to worry about their future.”
However, the Treasury defended the government’s position.
A spokesperson said: “After wiping the slate clean with a once-in-a-parliament budget, business sentiment increased in 11 out of 12 sectors, and nearly two-thirds of firms are optimistic about the economy.
"Capping corporation tax, establishing a National Wealth Fund, and creating pension
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