'The Budget needs to help us employ more apprentices'

"I have a thick pile of CVs at the office, and I want to give them all a job, but we can't," says restaurant co-owner Jamshid Golshan Ebrahimi.

Ahead of Wednesday's Budget, he and his wife Sally Butcher are calling on the chancellor for more subsidies for apprentices, so they can employ more young people, as well as a cut in National Insurance (NI) contributions to help their business survive.

They say that since NI rises were announced in the 2024 budget, the effects have been "even worse" than expected for their restaurant and shop Persepolis in Peckham, south-east London, as their take-home pay has gone down by 25%.

Ebrahimi said his business was only surviving because they were working "80 or 90 hours a week".

Butcher, 65, says they are not the only ones, as those working in hospitality today are "working more than we used to".

Even if they wanted to cut back their hours, she says, they simply cannot afford to.

Ebrahimi described the measures introduced in the last Budget as a "silent killer" for the hospitality industry.

"The cost of everything has gone up. The bank balance has gone down," he said.

In addition to a rise in NI contributions and minimum wage, he pointed to wider cost of living pressures.

"Tomatoes used to cost £3.60 a punnet and now it's £9.50 - these are hidden costs."

Ebrahimi has also warned of the wider ripple effects on the sector, particularly for young people and staff whose livelihoods depend on hospitality businesses.

"The government is supposed to be looking after us, so do something for us, bring in more apprentices, subsidise some of the wages, some of the VAT, reduce national insurance.

"There are so many things they can do if there is a will for it."

Rowlan Clark, 29, has worked as head chef at the restaurant for the past five years.

After dropping out of university, he turned to hospitality, describing it as "the net that caught his fall".

Clark said hospitality and retail have traditionally offered young people accessible entry points into the workforce, but opportunities are becoming increasingly difficult to find for both graduates and non-graduates.

"Those opportunities are diminishing," he said.

He wants to see more subsidised apprenticeships to reduce the cost of employing younger staff and encourage businesses to take on more young workers.

BusinessLDN has said its top priority is stability to "reassure financial markets", including a commitment to avoiding tax increases that would affect UK businesses.

CEO John Dickie said: "We need a sense that you can plan two, three, six months ahead."

But the organisation, which represents around 170 businesses in the capital, is also calling for targeted measures to help more young people not in education, employment or training (NEETs) into work by making it cheaper for businesses to employ them.

"It would be great for the economy that we've got young, bright, keen people engaged, learning new skills, earning a wage and paying for themselves rather than relying on benefits," he added.

He said rising National Insurance costs and increases to the minimum wage have made it more difficult for businesses to hire younger, inexperienced workers.

On the government's expected announcement on AI investment, Dickie said London businesses could use AI to improve training and adopt new technologies.

He also highlighted London's growing tech sector, arguing that attracting investment into the sector would help create jobs across the capital.

Labour's 2024 manifesto pledged not to increase income tax, NI and VAT, the three big revenue raisers.

In a speech last month, Chancellor John Healey said: "My defining mission as chancellor is growth, good growth in every postcode.

"And I've set out today the way this government will set about it: more devolution, more public leadership and control, more investment, more innovation, more jobs."

When asked about possible cuts in NI contributions and more support for young people trying to enter the workforce, a HM Treasury spokesperson said: "We are on the side of businesses.

"The chancellor is giving firms the breathing space to invest and grow, with business rates cuts, a cap on corporation tax, £4.3bn of support to limit bill rises, and employer NICs relief when hiring under-21s and apprentices under 25.

"As has always been the case, decisions on tax are a matter for the chancellor to set out at fiscal events, rather than routinely commenting on rumour, speculation or proposals."

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