Letters: What is the Chancellor trying to achieve?

Zero-sum game

Sir: Though troubled by the impact of Budget measures on employers and economic growth, I am more baffled by the regressive nature of those measures on the most vulnerable sectors – retail, hospitality, social care and students (‘Tax, spend, borrow’, 2 November). While the employer of a full-time employee earning £50,000 a year will see a cost increase of 2 per cent, the comparable increases for a full-time adult, a half-time adult and a 16-hour-a-week student on the minimum wage are 10.4 per cent, 13.1 per cent and a staggering 23.2 per cent respectively – and retail and hospitality are also hit by a major reduction in business rates relief.

The doubling of the employment allowance for the smallest employers is welcome, but fiscal drag reduces the availability from employers with up to 54 full-time staff on the minimum wage to up to 35, which will rule out even the smallest care homes.