Inflation’s Hot Ticket: What the 2024 Autumn Budget Means for You
The recent climb to a 3.5% inflation rate for the year ending April 2025 was basically a financial inevitability, according to the head honchos at Blick Rothenberg, a leading audit, tax and business advisory firm. Their take? The new rules from Chancellor Rachel Reeves in the Autumn Budget ticked the inflation clock into high gear.
What Happened In The Budget (and How You’ll Feel It)
- Employer NICs hit 15%: Companies now see a measurable rise in costs.
- National Minimum Wage jumped 6.7%: A win for workers, but a price‑tag for firms.
- All kicks off in April: How fast this feeds into everyday prices.
These moves are expected to see businesses pass the extra cost on to all of us—especially in grocery, gas and the inevitable price monsters of retail.
Direct Talks with the CFO of Blick Rothenberg
Robert Salter, a director at the firm, summed it up: “The Chancellor’s moves will inevitably let employers lift the cost of their operations into consumer prices. That’s why inflation surged to 3.5% by April 2025.” He added that the headline CPI rate will likely drop “in the coming months” as the shockwave of the new burdens fades, but that is a lukewarm relief for the mass of taxpayers.
Why This Matters to Every Worker
- © Higher Living Costs: Energy bills, food prices and everyday buys climb.
- © Salary Stagnation: Companies that can’t shift costs onto people are forced to freeze wage hikes.
- © Job Cuts: Fewer roles for those leaving or looking for work.
Short‑term, the decrease in pay reviews and hiring shortages are pushing unemployment up, leaving more people in a less-than‑ideal glut of under‑employment.
Charities and Small Businesses: The Under‑The‑Radar Victims
Robert warned, “Charities will struggle hard, and small businesses won’t have the market muscle to raise product prices or trim their staffing costs quickly. The growing inflation will have a broadcasting ripple effect – giving a blow to the UK economy in no small chunks.”
Looking Ahead: The Bottom Line
The headline: economists expect the CPI rate to ease, but with a lingering high price climate that will persist. Without a policy reversal on NICs and minimum wage hikes, businesses facing tough passes will keep wages at a halt, layoffs on the menu, and further woes unrolled across the giggle‑capped UK economy.
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