HIGHLANDS entrepreneur Rebecca Reid has reacted broadly positively to a Budget that included measures that should help her laundry and cleaning business and seemed free of nasty surprises, although it could put pressure on wages costs in future, writes Mark Williamson.

The Red Sock Landry business that Ms Reid runs in Grantown-on-Spey has seen takings fall by more than 50 per cent amid the coronavirus crisis. Lockdowns have taken a heavy toll on the tourism sector, which is a key source of business for the firm.

Ms Reid has drawn on the furlough scheme to help preserve the jobs of 11 employees.

She said Mr Sunak’s decision to extend the end date for the scheme from April 30 until the end of September could provide the breathing pace required. While employers will have to contribute towards costs from July, indications from customers are that trade will be stronger by then.

However, that depends on lockdown restrictions being eased sufficiently quickly. “Customers have got back-to-back bookings,” noted Ms Reid, adding: “it could be jeopardised if parts of the country open up at different rates.”

Ms Reid welcomed Mr Sunak’s decision to extend the VAT rate reduction for hospitality firms on the grounds it would boost a key market.

She said the plan to allow firms to take out Recovery Loans of £25,000 plus sounded “really,really helpful”. Red Sock has made use of the Bounce Back lending programme.

Ms Reid also welcomed the prospect of free training being offered in areas such as digital technology under the “Help To Grow” scheme.

She was relieved firms that make profits of £50,000 or less will not be impacted by the increase in the Corporation Tax rate due in 2023. But Mr Sunak’s decision to peg annual personal income tax allowances at £12,570 from April until 2026 was a concern. Ms Reid’s wish that this should not impact on the incomes of workers could have implications for wages bills.