The founder and MD of Purplex, the UK’s top marketing company in the glazing, construction and home improvements sector, says this week’s Budget will have a significant impact on businesses already struggling with rising costs.
Andrew Scott added that although the first Labour government financial statement in 14 years represents the biggest tax hike in recent memory, the time is also ripe for companies to respond by focusing on growth.
“There is no doubt that the Budget will hit small and medium businesses particularly hard, with the knock-on effect that firms will have to reduce pay rises and become more cautious on recruitment,” he comments.
Following Wednesday’s Budget, companies will have to pay National Insurance contributions at 15% on salaries above £5,000 from April, up from 13.8% on salaries above £9,100. The Government hopes this will raise an additional £25bn a year. Also, employment allowance, which allows smaller companies to reduce their NI liability, will increase from £5,000 to £10,500.
Also from April, the legal minimum wage for over-21s will rise from £11.44 to £12.21 per hour.
Andrew continues: “The Budget is good for public sector spending, particularly in areas such as the NHS, but businesses have been targeted to fund this. However, none of us can afford to bury our heads in the sand. Adversity always provides opportunity.”
– Focus on growth – with profits being raided with tax, companies must drive revenue lines to make up the difference.
– Drive operational efficiency – is everyone on the team as productive as they should be? 80% of the work in many companies is carried out by 20% of the staff. Focus on systems and processes.
– Consider outsourcing elements of your business, partnering with specialists with more expertise, efficiencies and performance to allow you to focus on core-competencies.
The founder and MD of Purplex, the UK’s top marketing company in the glazing, construction and home improvements sector, says this week’s Budget will have a significant impact on businesses already struggling with rising costs.
Posted in Articles, Building Industry News, Building Products & Structures, Building Services, Glass, Glazing, Information Technology, Interior Design & Construction, Interiors, news, Research & Materials Testing, WindowsLeading life-safety-systems manufacturer, C-TEC, has appointed Amos Hill as its new Southern Business Development Manager for System Sales.
Posted in Access Control & Door Entry Systems, Articles, Building Industry News, Building Products & Structures, Building Services, Facility Management & Building Services, Health & Safety, Information Technology, Innovations & New Products, Recruitment, Retrofit & Renovation, Security and Fire ProtectionChoosing the right rooflight design for your project is important both from an aesthetical and practical viewpoint. Paul Trace, from Stella Rooflight, writes the following article…
Posted in Articles, Building Industry News, Building Products & Structures, Building Services, Building Systems, Glass, Glazing, Heating, Ventilation and Air Conditioning - HVAC, Lighting, Restoration & Refurbishment, Retrofit & Renovation, Roofs, Sustainability & Energy Efficiency, WindowsThe latest Builders Merchant Building Index (BMBI) report shows builders’ merchants’ value sales in August were down -5.6% compared to the same month in 2023.
Posted in Articles, Building Associations & Institutes, Building Industry News, Building Products & Structures, Building Services, Building Systems, Health & Safety, Interior Design & Construction, Interiors, news, Paints, Paints, Coatings & Finishes, Publications, Render, Research & Materials Testing, Restoration & Refurbishment, Retrofit & Renovation, Sustainability & Energy Efficiency, Walls