Nothing in the budget 'helping us small guys,' small business owners say

Rocked by a series of tax hikes in the latest provincial budgets, small business owners in Newfoundland and Labrador are nervous about the bottom line.

• N.L. businesses tap into backlash with 'bad-budget bargains'
• Full coverage: Newfoundland and Labrador Budget 2016

"It's all price increases across the boardthere's nothing [in the budget] helping us small guys," says Tony Green, who with his brother Ernest Green runs the E & E Drive-In, a Brigus take-out restaurant famous for its deep-fried Mars bars.

"Between the taxes and the levythis budget didn't do anything to promote business in Newfoundland and Labrador," Green said in an interview.

"If I were opening up a business now, I would have to sit down and really crunch some numbers and think about what is next on the government's list to cut and increase."

This budget didn't do anything to promote business in Newfoundland and Labrador.- Tony Green

Business owners say they are dealing with problems on two fronts.

On the one hand, there are higher overheads because of a hike in the HST, raised insurance taxes and increases in other fees and taxes.

On the other hand, customers are expected to have less disposable income because of tax hikes, job cuts and the controversial deficit reduction levy that takes effect in July.

Phil and Dana Combden, who opened Crooked Phil's Cafe in Carbonear in December 2015, saidalthough their new business has been doing well, they are concerned about the future.

"We're going to have a higher overhead as purchasers so in order to run our business, our cost of business is going to increase," said Dana Combden.

"The biggest step that we're taking at the moment is trying to get a handle on what does the future hold for us?"

Consumers expected to tighten purse strings

Compounded with the higher costs of running a business is the uncertainty of how consumers will react when tax hikes kick in.

"The consumer is starting to think about not being so wasteful and not spending as much. Everybody is affected by the budget in that we're starting to second guess every purchase," she said.

Everybody is affected by the budget in that we're starting to second guess every purchase.- Dana Combden

Jeremy Meadus, general manager of OP Fishing and Hunting in Mount Pearl, shares similar concerns.

"We're bracing for a year of lower sales," said Meadus.

"I'm optimistic hunters and fishers seem to hold something sacred about their moose hunting trip of their salmon fishing trip," he said.

"But that doesn't mean that they're going to come in and buy a new salmon rod or a new rifle or a new set of boots.They're going to try and get by with that have because their budget is going to be limited."

Many business owners show concern for the future of business in the province.

"It's a very scary budget," said Dana Combden.

"And for a small business that just started, it's certainly going to be a challenge. It's a challenge that we have to be prepared for and do the best we can to weather the storm."

Meadus said his company has laid people off for the first time in 20 years.

"We've cut hoursit's certainly going to be a challenging year," he said.

Dave Snow, owner of Wild Things and Wildland Tours in St. John's, said that while businesses now face very real problems, he chooses to remain optimistic.

Shortly after the budget was announced, Snow decided to give his employees a wage increase, to encourage them in a time of provincial doubt and uncertainty.

"We did that to counter the sense of pessimism," said Snow. "We've got to sink or swim together."