The Budget – key next steps for businesses

Friday, 1 November 2024 10:43

By Gus Williams, interim CEO at Chambers Wales South East, South West and Mid

What should be the next key steps for businesses, following the Autumn Budget?

Gus Williams, interim CEO at Chambers Wales South East, South West and Mid, shares the key next steps for businesses in Wales following the Autumn Budget.

National Insurance and National Minimum Wage increases

“Businesses should look at their budget planning for next year and cashflow forecasts. Both of these increases will impact the next round of staff wage increases and the increases to the National Minimum Wage don’t just impact those at the bottom, but put upward pressure on those above. Getting this right can take time and require a few rounds of review and revision to get right and ensure all the potential knock on impacts are carefully considered. Businesses will need to consider the impact of these increases to pricing, cashflow and working capital.”

 

Employee Rights Bill

“Although we don’t have fixed dates yet, businesses with staff currently on zero hours contracts may want to include this consideration in their planning for next year and think about the impact of those staff who are able and want to move onto fixed contracts.  Both the tax and National Minimum Wage increases along with the proposed Employee Rights Bill will have impact on future staff planning and recruitment.”

 

Business owners considering selling or retiring

The increases to Business Asset Disposal start from 5 April 2025, so those business owners already thinking about exiting may wish to consider the impact on their timeline.”

 

Businesses looking to acquire

“As above, the changes in Business Asset Disposal Relief in 2025 may provide an immediate opportunity to look at potential acquisitions you would like to make.”

 

Capital Allowances

“Capital Allowances are set to remain in place as they are. Those businesses who were concerned about certainty can now act and plan with confidence that the rules should remain the same for the foreseeable future.”

 

Inheritance Tax, business property relief and Business Asset Disposal Relief changes

“A common issue we see is business owners leaving it too late to plan effectively for retirement or exit in a way that maximises the value of their business or meets all of their retirement and exit objectives. Achieving this can require several years of planning to align the short-term and long-term business and financial objectives. Ensuring you plan further ahead can help minimise the impact and risks of tax changes.”

 

The government’s growth strategy

“The Budget identified important sectors that the government will be looking to support with specific initiatives. Businesses operating in these sectors may want to keep an eye out for further announcements and engage in any consultations. The Chambers will of course be contributing and help facilitate these. The sectors identified are:

  1. advanced manufacturing
  2. clean energy industries
  3. creative industries
  4. defence
  5. digital and technologies
  6. financial services
  7. life sciences
  8. professional and business services”

The industrial strategy can be found on the government’s website.

 

Farmers

“Generational small farmers will feel particularly aggrieved by the changes to agricultural land relief for Inheritance Tax and some intense lobbying will be taking place before these come into effect. Whether that lobbying will have any impact we will wait and see. As with the changes to business property relief, farmers will need to consider their succession planning and seek advice to ensure they have a workable plan in place that meets their objectives.”

 

Wales-specific impacts

“The increases to funding for the Welsh Government will be rolled into the next Welsh Government budget planning this December. Support for business will be a part of those discussions, and the Chamber will continue to be a voice for members and businesses as a part of the Welsh Government budget planning process.”

Do you have a story to share? Email News@broradio.fm 

 

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