A bad Budget for business but we must make the best of it, says Insight Data MD

Posted on

The founder and MD of Insight Data, the UK’s leading construction and glazing industry data specialists, says the October 2024 Budget will have a significant impact on businesses already struggling with rising costs.

Andrew Scott added that although the first Labour government financial statement in 14 years represents the biggest tax hike in recent memory, the time is also ripe for companies to respond by focusing on growth.

“There is no doubt that the Budget will hit small and medium businesses particularly hard,” he said, “with the knock-on effect that firms will have to reduce pay rises and become more cautious on recruitment.”

Following Wednesday’s Budget, companies will have to pay National Insurance contributions at 15% on salaries above £5,000 from April, up from 13.8% on salaries above £9,100. The Government hopes this will raise an additional £25bn a year. Also, employment allowance, which allows smaller companies to reduce their NI liability, will increase from £5,000 to £10,500.

Also from April, the legal minimum wage for over-21s will rise from £11.44 to £12.21 per hour.

“The Budget is good for public sector spending, particularly in areas such as the NHS, but businesses have been targeted to fund this,” Andrew said. “However, none of us can afford to bury our heads in the sand. Adversity always provides opportunity.”

Andrew’s three-point plan for business survival is:

  • Focus on growth – with profits being raided with tax, companies must drive revenue lines to make up the difference.
  • Drive operational efficiency – is everyone on the team as productive as they should be? 80% of the work in many companies is carried out by 20% of the staff.  Focus on systems and processes.
  • Consider outsourcing elements of your business, partnering with specialists with more expertise, efficiencies and performance to allow you to focus on core-competencies.

For more information about Insight Data’s marketing services and industry databases, and how they could help to grow your business in tough times, visit www.insightdata.co.uk.