How the Autumn Budget Might Turn Your Business into a Tightrope
The Chancellor’s latest budget is coming in hot‑straw again, and experts say it’s going to feel like a sudden sprint for many companies. If your business is in retail or hospitality, the added costs of the new minimum wage and National Insurance rates could be a real drag.
Why Every Director Should Be on Their Toes
- 13 % jump in insolvencies in November 2024 compared to October, says the Office for National Statistics.
- Last month, Homebase went into administration – one of several firms that felt the pinch.
- Inquiries to insolvency advisers spiked in November as business owners tried to map out options before the new year.
Nicky Fisher – partner at Herron Fisher and a key voice with R3, the UK’s insolvency trade body – stresses that the period leading up to December is “either a lifeline or a tipping point” for many enterprises.
“With the new employer National Insurance and Minimum Wage changes coming in April, the next three months will be crunch time,” Fisher warns. “If you’re in retail or hospitality, you’re already stretched thin by higher costs and cautious customers. The extra cost might push you toward restructuring or, worse, insolvency between March and June.”
What the Numbers Mean for You
Think of your cash flow as a garden that’s struggling with a stubborn weed: the increased wages and National Insurance are the water that could drown the problem if you’re not careful. Fisher’s team notes that many directors are seeking advice now, which is a good sign that they’re planning ahead.
David Kelly’s Take on the Road Ahead
Another industry veteran, David Kelly of PwC, adds a bit of cautionary humor: “The year ahead feels like navigating a maze while carrying a full backpack.” He calls for resilience across the corporate world to survive these new pressures.
Bottom Line
Whether you’re a boutique shop, a bustling café, or a corporate office, the budget’s changes are a potentially hefty bullet to your bottom line. The real solution? Stay in touch with your advisers, keep a close eye on your finances, and get ahead of the curve before December’s crunch puts your business in the spotlight.
