What the Numbers Are Really Saying (And a Few Humorous Take‑aways)
Grant Thornton’s latest Business Outlook Tracker – 800 UK companies, December 2024 – reveals a not-so‑happy mood about profit growth. The Budget’s hike to employer National Insurance Contributions (NICs) and the National Minimum Wage is drumming on their wallets, and folks are feeling the squeeze.
Cost Crunch, Corporate Freeze‑Frame
- Hiring Hacks: Over half (52%) say they’ll pause the hiring frenzies, tease in job cuts, and hand out modest or no salary bumps.
- Benefits Check‑Out: 66% plan to revisit employee perks, with 16% ready to slash rewards over the next six months.
- Price‑Rise Push: For a similar 54%, the price tag on goods and services is set to climb.
Medium‑Sized Businesses – The Battle Frontier
Medium players feel the sting most strongly. Their stats:
- Job cuts? 55%
- Hiring freezes? 55%
- Price hikes? 56%
Comparatively, the big kids report 42% for cuts, 43% for freezes, and 47% for price hikes.
Funding follows the same trend: \n\n- Confidence dipped by –9pp from the year’s start; 65% expect to hunt for extra cash next year.
Profit‑Prediction Fallout (It’s Pretty Grim)
- Medium‑sized folks: 43% foresee profits sliding in the next six months.
- Big corporates: Only 26% worry about a dip.
Economy optimism follows suit: 72% of medium players stay hopeful, versus 92% of the larger ones.
Commentary from the Experts (With a Touch of Sass)
Ben Rowntree – The ‘Benefits Whisperer’
Ben’s big message: “If you’re going to trim benefits, keep the transparency crystal‑clear. Employees gotta know the ‘why’ and the new perks. Mixing up pay cuts with shout‑outs on tax‑free perks saves pennies and grabs the best talent.” He adds a friendly nudge: “Remember, training and holiday packages can boost your value proposition without burning through the budget.”
Schellion Horn – Economic Radar
Schellion steers caution: “After the Budget, many folks expected a quick rebound, but that didn’t happen. The cost rise hits even the small‑to‑medium folks hard.” He highlights the domino effect: “If businesses press prices up, that fuels inflation and keeps interest rates up, putting even more strain on the company’s bottom line.”
Final thought: “The Bank of England’s slightly dampened growth forecast means the focus remains on cost‑cutting, efficiency, and snagging any available grants—so keeping a sharp eye on local council funds might just be the game‑changer.”
Bottom Line (and a Tiny Joke)
UK businesses are staring down a tougher road: rising wages, icy profits, and a brave fight to stay afloat. Medium‑sized companies feel the heaviest bite, but they’re scrambling to shuffle benefits, freeze hires, and pry a few pennies from advertisers. In short, if you’re a business, get ready to unleash your inner accountant wizard—because the Budget’s just the latest dragon on the horizon.
And the best part: to keep breathing easier, keep yourself out of the payroll nightmare and shop smart—same rule for your paycheck, right?
