The recent Autumn Budget from Chancellor Rachel Reeves has sparked both optimism and concern within Leicester’s small business community.
While notable changes may impact operating costs and financial planning, experienced scale and exit business coach Matt Bull offers actionable strategies to help local business owners navigate these shifts with confidence.
Plan Around Rising National Insurance Contributions
With increased National Insurance costs, businesses employing staff may feel an added financial burden. To help mitigate these costs, Matt encourages business owners to examine their operational expenses closely.
“Reducing operational costs without sacrificing service quality is essential. Consider streamlining processes, renegotiating terms with suppliers, or even exploring part-time and flexible staffing options to balance your budget,” he advises.
Stay Informed on Capital Gains Tax Relief Adjustments
New adjustments to capital gains tax relief may impact future plans to sell assets, whether you’re currently considering a sale or not. Staying informed on these changes can offer a clearer perspective on future financial decisions.
“Even if you’re not thinking about selling now, understanding these tax adjustments can help you maximise the value of your assets down the line,” Matt advises.
Navigating the Impact of Minimum Wage Increases
As minimum wage increases take effect, small businesses are set to face unique challenges and opportunities in balancing higher labour costs with sustainable growth. For many, the increased financial burden can pressure already tight profit margins, leading some to consider cost-cutting measures such as reducing staff hours or even exploring new pricing structures.
"While it can be tempting to view wage hikes as purely an added expense, there are ways to adapt that can lead to stronger business outcomes," advises Matt. He suggests that businesses focus on enhancing efficiency and exploring digital tools to streamline tasks.
Additionally, businesses that can absorb these increases may find themselves at a competitive advantage in industries where tighter labour markets shift the industry composition, raising productivity standards across the board.
Reflecting on a challenging year for Leicester, particularly with major high-street closures like M&S, Matt emphasises the importance of resilience and adaptability in response to these budget updates:
“Now is the time to adapt, innovate, and seize the opportunities this budget presents. As a business coach, I’m here to support Leicester’s small businesses in strategically navigating these changes to help build a more resilient local economy.”
By proactively embracing these opportunities and adapting to the new costs and incentives, Leicester’s small businesses can strengthen their footing in the local economy. With thoughtful planning and a focus on evolving market needs, business owners can not only protect their businesses but position them for sustainable growth. Now, more than ever, a proactive approach can help Leicester’s business community turn these budget measures into tangible success.
As with all events that occur in business, and in life, the most important thing for business owners is how they choose to react to the new environment they are operating in. Get advice, decide what it means for your business model, and act accordingly.