As autumn heralds in the Chancellor’s Autumn Statement, small businesses across the UK are poised to learn how upcoming fiscal policies might affect their operations. This year, the stakes are high with the echo of a potential general election in 2024. At Nordens, we recognise that these aren’t just policy shifts; they’re the gears that drive your business forward.
With an ear to the ground and an eye on the horizon, we’re here to sift through the financial forecasts and translate what they mean for the lifeblood of the economy—your ventures. As we await Chancellor Jeremy Hunt’s address, let’s consider what these changes could mean for your business, examining the facts with clarity and providing insights that matter to you, the entrepreneurs who keep the heart of commerce beating strong.
Here’s what you, as a business owner, may need to watch for:
Interest Rates Unchanged
The Bank of England’s decision to maintain the base interest rate at 5.25% for the second consecutive time comes after a series of 14 increases. Despite this pause, interest rates, along with mortgage and savings rates, remain at a historical high.
For small businesses, this means the cost of borrowing remains significant, and financial planning should account for these conditions. Nordens is on hand to guide you through these stable yet elevated rates, ensuring your business strategy is robust and responsive.
Living Wage Increase
Small businesses must prepare for the national living wage hike to at least £11 an hour for workers over 23, starting April 2024. This marks a significant payroll adjustment, especially for those who rely on a sizeable workforce.
The government’s stance on tax cuts remains conservative due to the priority given to inflation control. Yet, 31% of SMEs cite high taxes as a pressing concern, indicating a strong desire for tax relief that could foster competitiveness and innovation.
Energy Bills Insight
With the Energy Bills Discount Scheme concluding in March 2024, businesses currently benefiting from gas and electricity discounts must plan for potential increases in energy costs, which could significantly affect operational budgets.
Business Rates Relief
The current 75% relief for eligible retail, hospitality, and leisure businesses, capped at £110,000 per business, is set to expire in April 2024. The Autumn Statement may reveal whether this critical support will extend, affecting countless business owners counting on this relief.
Inheritance Tax Speculation
Reports suggest the government is contemplating changes to the inheritance tax system, which could be announced in the Autumn Statement. While the details are not yet clear, any reforms could have implications for business owners’ succession planning and asset management.
ISA Allowance Possibilities
There’s talk of an increase in the ISA allowance, potentially from £20,000 to £30,000. Such a change would be a good thing for savers and could benefit those looking to maximise their tax-efficient savings.
Join Nordens for a Post-Statement Breakdown
In the wake of the Autumn Statement, Nordens is set to host an insightful live Q&A webinar on the 23rd of November. This is your opportunity to glean expert analysis and forward-thinking advice directly from our leadership team. Mitch Hahn, our CEO, alongside Adam Truluck, Tax Manager, and Joe Sword, Director of Strategic Advisory, will be unpacking the statement’s implications and answering your questions.
To secure your spot and gain valuable insights that could shape the future of your business, register here for the webinar.
Stay tuned for our analysis, and in the meantime, we’re here to assist with any queries you have as we approach this critical update.