Mark Sweeny’s Post

Six days after the Budget, concerns are rising over its potential impact on workers. The Treasury Select Committee’s review has cast doubt on Chancellor Reeves’ claims that the Budget won’t hurt working people. The OBR suggests that most of the employer National Insurance rise will likely impact wages, with some experts estimating workers could eventually bear the entire cost. Additionally, an increase in stamp duty on investment properties has sparked fears of higher rental costs as landlords face greater expenses. As the Chancellor prepares to address the Committee, many are watching closely to understand the Budget’s real implications for the workforce. Click here to learn more: https://lnkd.in/gBwf2NM7 #Budget2024 #UKEconomy #NationalInsurance #StampDuty #CostOfLiving #FinancialImpact

A black hole busting budget: but will it break the bank? Following Labour's first budget in 14 years, employers have tough decisions to make. David Browne, partner and head of employment at law firm, Shakespeare Martineau explores what the budget means for businesses. https://lnkd.in/eiqUFfs5 #UKbudget #budget #nationalinsurance #employmentlaw #HR

Looks like it is getting to the time to start plucking them Turkeys for the big day. And of course, talking about being plucked, we note this morning along with the rise in the UK inflation figure to 2.6%, that the majority of Britain’s biggest listed companies will together account for less than 3% of the revenue raised by Labour’s increased payroll tax, Bloomberg analysis shows, despite prime minister Sir Keir Starmer’s promise to target “those with the broadest shoulders”. Chancellor Rachel Reeves from Accounts announced more than £40bn in tax hikes at the end of October. Most of the money will come from higher employers’ national insurance contributions, raising around £24bn to £26bn a year. The move was intended to place the burden on large employers rather than voters. However, many blue-chip companies have significant international operations and employ relatively few people in the UK. The higher payroll tax has a much greater effect on firms that depend on British workers, particularly shops, pubs and other high street businesses.

🚨 Key Insights from Today’s Budget Speech As we reflect on the Chancellor’s address, two pivotal points emerge from our discussions: 1️⃣ Chris Bryce expressed a critical concern, “The Chancellor’s speech has unveiled a substantial increase in Employer National Insurance Contributions, which we must acknowledge as a direct tax on jobs. This will lead to higher prices, stagnated wage growth, reduced hiring, and potentially even redundancies. As we await the details in the Red Book, it’s crucial that we communicate the real impact of these policies on working people and the economy.” “The proposals to tackle unscrupulous umbrellas are substantive and need to be examined in detail. At first glance they appear to be difficult to implement an will need in-depth consultations; we agree with the government’s view that “businesses that continue to outsource payroll operations to umbrella companies will take steps to ensure that these obligations will be correctly met on their behalf. This could include undertaking due diligence checks or putting in place legal indemnities.” This shift in responsibility could lead to greater compliance and transparency within the sector, ultimately benefiting both workers and businesses. 2️⃣ Deb Murphy noted, “Whilst it has been encouraging to hear the plans for improving transport and homes across the UK, there remains a concern that businesses will be unable to deliver growth as the Chancellor has planned. Yes, people will be able to get to work easier, but the taxes on business may make it hard for some companies to remain financially viable.” As we await the detailed insights from the Red Book, it’s crucial for us to remain vigilant and advocate for the needs of the workforce. How do you think these changes will shape our economic landscape moving forward? #Budget2024 #AutumnBudget #EconomicGrowth #NIContributions #Transport #WorkingPeople

HOW WILL THE AUTUMN BUDGET IMPACT SECURITY COMPANIES The 2025 UK Budget introduces significant changes that will affect the financial and operational landscape for security companies. Here’s a breakdown of the main budget items to be aware of and how they might impact your business. Employer’s National Insurance Increase One of the most impactful changes is the rise in the employer’s National Insurance (NI) rate from 13.8% to 15%, coupled with a reduction in the NI threshold to £5,000. This means higher payroll costs for employers across the board. Although the increase in Employment Allowance to £10,500 will help small businesses absorb some of these expenses, the NI rise presents a notable financial burden, especially for companies heavily reliant on human capital, such as security firms. National Living Wage Adjustment From April 2025, the National Living Wage will rise to £12.21 per hour, in line with the government's aim to establish a unified wage standard. This change will directly impact security firms, where personnel costs are a significant portion of overheads. As many security roles require 24/7 coverage, the wage increase will amplify staffing costs, pressuring margins and potentially requiring a review of service rates to ensure profitability. Corporate Tax Stability and Capital Gains Tax Changes While the corporate tax rate remains steady at 25%, the 2025 Budget introduces a “corporate tax roadmap” focusing on tax stability and full expensing, enabling businesses to benefit from 100% first-year relief on qualifying investments. This is a positive for firms investing in technology, security infrastructure, or vehicles. However, the budget’s increase in Capital Gains Tax (CGT) rates may affect companies that rely on asset disposal as part of their financial strategy, with CGT rates rising to 18% (basic rate) and 24% (higher rate). Strategic Considerations for Security Firms In light of these anticipated changes, security companies may need to take a strategic approach to 2025 budgets. The combined effects of increased NI contributions and the National Living Wage hike necessitate a closer look at workforce management, labour cost controls, and potentially, adjustments to client pricing. Leveraging full expensing allowances for capital investments could also prove beneficial. If you are an owner of a security firm like me - W4G Fire & Security, it’s advisable to review the full budget documentation and consult with financial advisors who understand the unique needs of the security sector. #security #autumnbudget #guarding #cctv #monitoring #accesscontrol

Following on from yesterday's Autumn Budget, we sum up on some of the keypoints impacting on businesses... https://lnkd.in/e3UwCtAd #AutumnBudget2024 #Employers #CorporationTax #NationalInsurance

Rachel Reeves set out Labour’s plan for the UK’s finances last week in what was one of the most hotly anticipated Budget announcements in decades. If you run a business, one of the key changes will affect the amount of money you pay on your employees’ National Insurance contributions. Currently, you’ll be paying a rate of 13.8% on top of your employees’ earnings, once they go over the annual tax-free threshold (currently £9,100, but set to drop to £5,000). As of April 2025, the payable rate will rise to 15%. The move is set to raise £25 billion. There are still ways you can offset some of the costs of your employer National Insurance contributions, including claiming the Employment Allowance, which the government is planning to double in due course to help companies reduce their overall National Insurance liabilities. For help navigating NICs, please contact our employment law specialists on 01245 261883. #ukemplaw #autumnbudget #budget2024 #nationalinsurance #nationalinsurancecontributions #nics #employers #businessowners

Great to see our MD, Vipul featured in City AM giving his reaction to yesterday's Autumn Budget!   Following the Chancellor's statement, Vipul raised concerns over proposed hikes in employers’ National Insurance and Capital Gains Tax, warning the changes could heavily impact UK businesses' ability to grow and create jobs.   Vipul called the 1.2 percentage point NI rise “a big blow to businesses,” warning that it could lead to fewer hires, and new cuts to employee benefits as firms brace for added costs.    He also said the CGT hike could risk deterring investment and talent away from the UK.   🔗 Check out his comments in the full story here: https://lnkd.in/efZ2RfzC   #NationalInsurance #CapitalGainsTax #AutumnStatement #BudgetDay

Following the introduction of updated NIC rates and other fiscal policies, UK employers should adapt their financial and payroll systems to harness these changes effectively. Strategic adjustments will be crucial for enhancing operational efficiency and growth within the UK.

Initial thoughts from the 2024 Autumn Budget: -The 15% increase in employers National Insurance will be a blow to businesses… -The increase of employment allowance from £5,000 to £10,500 softens the blow for the smallest businesses with employees. -The increase in employment allowance from £5,000 to £10,500 softens the blow for the smallest businesses with employees. -The current 75% discount to business rates - due to expire in April 2025 - will be replaced by a discount of 40% - up to a maximum discount of £110k… This means that many businesses will still see their business rates nearly double!   -Minimum wage rise of 6.7% is good for low-earning employees but bad for businesses that are already struggling. -The lower rate of Capital Gains Tax will rise from 10% to 18%, and the higher rate from 20% to 24%. The rates on residential property will remain at 18% and 24%. This will have an impact on business owners looking to sell or close via a Members Voluntary Liquidation. How are these changes likely to affect your business?