National insurance hike a 'big misstep' for Labour, says Dragons' Den star Deborah Meaden
Deborah Meaden has criticised the government's national insurance hike as a "big misstep", but insists she still supports Labour's plan.
Listen to this article
The businesswoman and Dragons' Den star says the government's plans do address the issues that businesses are facing today, such as funding, cash flow and late payments.
However, she added: "As with any government, as with any decisions, I don't like everything the government's done and I certainly think there's been some big missteps."
She referenced the hiking of national insurance on employers as a misstep by the government, saying "that's a very difficult one for businesses".
She added: "But as with all plans, it's always about implementation. Some of these plans take quite a while and I think we've become so used to wanting to feel the impacts now that it can sometimes feel difficult to have faith in those plans.
"I still believe the things that they're tackling are the important things for small businesses."
Read more: Brits could be forced to carry digital ID cards under Labour plans to curb illegal immigration
Read more: Pressure on Chancellor ramps up as government bond sell-off deepens
Many businesses have seen their labour costs rise thanks to the rate of employer national insurance being increased in last year’s Budget.
Some retailers have blamed the tax hike for the decision to raise prices in shops, which they say has allowed them to partly mitigate the impact.
The national minimum wage also increased in April, providing a boost to low-income workers across the UK.
However, businesses say the overall jump in staff costs, coupled with new taxes on plastic packaging, has added £7 billion in costs.
Ms Meaden said she had "sympathy" for the government saying: "It's not just us, [it's] every country in the world...we're facing pretty turbulent times and I do think that we've become very impatient.
"You know, there are times, and certainly in business, when I make a decision today, and I know that it's not really going to be felt for two or three years time.
"But actually in politics, you don't have the luxury of that time."
