Surrey residents and businesses urge budget support for cost of living crisis

High costs and calls for government action

Surrey, one of the UK’s wealthiest regions and a major contributor to the national economy, is also among the most expensive places to live. Average house prices hover around £500,000, and high rents and living costs are squeezing residents and businesses alike.

Business owners like Andy Hayward, owner and head brewer of Thames Side Brewery in Hersham, are urging the government to reduce business rates and cut VAT on hospitality. Hayward emphasized that these measures would help small businesses stay afloat amid rising costs.

Residents are also feeling the strain. Lucy, a resident interviewed by BBC Radio Surrey, called on ministers to prioritize lowering food prices, which have become a significant burden for households.

Energy and fuel costs remain pressing concerns. While the government has removed VAT from electricity bills and extended a 5p fuel duty cut, some residents and business owners say these steps do not go far enough.

Poverty amid wealth

Despite its affluence, Surrey is not immune to poverty. In Elmbridge, one of the county’s most expensive areas for housing, the number of people living in poverty has risen. According to Walton Charity, 68% of those affected are working households, highlighting the growing challenge of in-work poverty.

Jo Burton, founder of Banstead Pantry, a community initiative providing food support, noted that demand for services has increased. She stressed the need for policies that address the root causes of poverty, including housing and energy costs.

Government response

A spokesperson for HM Treasury acknowledged the impact of higher prices on households and businesses. The government has already outlined measures to ease financial pressures, including capping bus fares in England at £2 by 2027, freezing rail fares, and maintaining the freeze on prescription charges.

However, business owners and residents argue that more needs to be done to support those struggling with the cost of living, particularly in high-expense regions like Surrey.

What this means

Lazyfounder analysis — our interpretation, not reported fact.

This story underscores the disconnect between national economic indicators and local realities, even in affluent regions like Surrey. For founders and operators, it highlights the importance of understanding regional cost pressures when scaling or operating a business. High business rates and VAT on hospitality can significantly impact profitability, especially for small and medium-sized enterprises (SMEs). The calls for policy changes also signal potential opportunities for startups offering cost-saving solutions in sectors like energy, food supply, and housing.

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