By Isle of Wight Observer
It’s no secret: everyone running a business is spooked. In 2020, hiring 21-year-old cost employers £17,035. Today, that same person will cost you £29,654. A 74 per cent increase, thanks to the Minimum Wage and National Insurance. Older, more experienced workers haven’t seen anything like that kind of pay rise. That huge hike makes it prohibitively expensive to employ young people at all. I thought of an inflation joke the other day; it’s less funny today.
Young people’s pay is unfair to older staff. It makes the value of their experience and service seem virtually worthless. Politicians have made another huge blunder; no wonder we have so many unemployed youth and 700,000 jobless graduates. From April, your boss will have to pay an extra 15 per cent of your salary to HMRC. It’s hardly surprising that vacancies are falling and unemployment is rising fast; business confidence is terribly low.
And try not to think too much about “AI”, which everyone says could throw half the workforce onto the scrapheap. When it’s not talking Mandleweasel, the government says it’s making “tough decisions” and employment will “rise over the next three years.” Clearly, they’re ignoring the 184,000 jobs lost since the budget. Their inflation claims are just as preposterous. My mobile provider just informed me of a 7.3 per cent rise.
Thanks to Ed Miliband’s environmental taxes, I get a nasty shock every time the electricity bill drops on the mat. Now we have the ferry emissions penalty hanging over us. I’ve even given up food shopping. I know it has to be done; I’d just rather not be there to witness the extortion at the checkout. Everyone knows about shrinkflation, but when did they stop charging (say) 76p for something? Now it’s all done in round pounds or to the nearest 50p. You see the flash of a “Clubcard price” but fail to spot the regular price ticket in a smaller font. At the till – when you can find someone to argue with – I protest the till is displaying the wrong price. The assistant points out I’ve been had by a Clubcard or Nectar price.
Thanks to Labour’s employment cost rises, every employer in the land had a great excuse to put prices up. If that Chancellor with the dodgy CV didn’t realise this would happen, she’s certifiably stupid. Whenever costs rise, businesses either increase prices or absorb them and make less money. If the customer can’t or won’t pay the higher price, the seller cuts costs (often staff) or their business fails. That’s why so many pubs are closing. At a Harvester restaurant on the mainland last week we couldn’t believe it closed at 9pm. The manager told me it’s to save on staff costs. Island publicans and restauranteurs say the same. It’s not worth watching a few customers nurse a pint for the last hour or two when the barman costs you £20 an hour and you have to keep the heat and lights on.
One of my sons is doing some home improvements. I can’t believe the price of building materials. A single sheet of insulation costs £25.
There’s no hope for Labour’s housebuilding target; the number of new homes underway is falling fast, and the houses aren’t going up as promised.
As Private Frazer warned all those years ago in Dad’s Army: “We’re doomed”. But before we all start digging bunkers and stockpiling tinned peaches, remember Britain has survived worse than this. We’ll grumble, we’ll adapt, and we’ll carry on – mostly because nobody has given us a better option.
So take a breath, keep your sense of humour, and try not to let the gloom swallow you whole. Things may look bleak but look on the bright side – you could be Peter Mandelson!