MANY businesses across the country, including here in Devon, are facing a staggering 140 per cent rise in their bills thanks to the Labour government cutting business rates relief from 75 per cent to 40 per cent.

This significant increase in costs, which came in at the beginning of April, is hitting the retail and hospitality sector hard.

Local entrepreneurs, who are already struggling with rising costs, have been telling me that Labour’s reckless rates hike may prove to be the final nail in the coffin for many.

I recently visited three remarkable businesses in Central Devon - Mill End Hotel in Chagford, Sandford Orchards in Crediton, and Select Motorhomes, in Newton Abbot - to hear firsthand about the impact the increase in business rates will have on their operations.

During my visit to Mill End Hotel in Chagford, owner Alex Horsall expressed concerns about the additional strain business rates will place on his award-winning Dartmoor hotel.

As Alex highlighted, the additional tax will force him to make difficult decisions regarding employment and investment.

Sandford Orchards, a family-run cider maker, who produces more than seven-million pints of cider a year, is also feeling the strain as it faces rising costs on multiple fronts.

Owner, Barny Butterfield expressed his frustration about the huge rise in business rates.

During my recent visit, Barny told me: “Business rates have climbed relentlessly and like National Insurance is a regressive tax, not linked to profitability or revenue.”

But it’s not just the hospitality sector.

Rob Lomas, Operations Director at Select Motorhomes, in Newton Abbot raised similar concerns during my visit to his business. The company’s operations are already being affected by rising overheads, and the added pressure of increased rates will make it even harder to stay competitive.

Select Motorhomes, like many others, relies on a combination of physical space and service, which makes the business rates hike particularly tough.

Be in no doubt, Labour’s decision to increase business rates by 140 per cent is a devastating blow to Devon’s businesses, particularly those in the retail and hospitality sector.

The challenge with business rates is especially severe for small, locally-focused businesses, where every additional cost becomes a burden. The increase in business rates places them at a disadvantage compared to online retailers who pay much lower rates for warehouses.

As a result, small producers are struggling to compete, and these damaging anti-Business tax increases will only exacerbate this problem.

For many businesses, the rising costs could lead to job cuts, reduced hours, and higher prices for customers.

As Shadow Chancellor, I will continue to raise these concerns in Parliament to ensure that local businesses receive the voice they need to survive and thrive.

It’s essential that the government reconsiders this increase and works towards a fairer system that supports the backbone of our economy – as it is businesses that create jobs, support communities, and drive local growth.

Devon’s small businesses need our support more than ever.

It is crucial that we act now to prevent further damage to our high streets, our hospitality sector, and the thousands of jobs that depend on them.

Mel Stride

MP for Central Devon