How will the say-nothing Spring Statement shape the future of businesses?
Many businesses felt as though they had been entirely overlooked by the Autumn Budget, as costs were set to rise without much support.
The Spring Statement was a chance to change direction and provide assistance to businesses.
This did not happen, so now businesses must find their own way to prepare for the future.
What economic challenges are businesses facing?
This year is set to bring about many of the changes laid out in previous Autumn Budgets, as well as the financial implications of the Employment Rights Act.
The increase in the National Minimum Wage and the National Living Wage has caused some business owners to express concerns about the cost of managing employees.
Unsurprisingly, this is paired with rising unemployment as young people in particular are struggling to find work.
There had been some speculation that the National Minimum Wage increase could have been deferred in the Spring Statement as a means to tackle both issues at once.
As this did not happen, businesses must continue to make the challenging decision on whether to press on with higher employee expenses or reduce team sizes to lower costs, but reduce the amount of talent in the team.
What made the Spring Statement feel more hollow was the outbreak of conflict in the Middle East.
The Office for Budget Responsibility (OBR) gave a positive forecast, indicating modest growth and a potential reduction in borrowing.
Yet this data was compiled prior to the conflict without acknowledgement of the rising fuel and energy costs and the disruption to the global economy.
The Spring Statement may have been an opportunity to reassure businesses that measures would be taken to limit the impact of disruption on the UK economy.
With no such reassurance forthcoming, businesses may once again feel overlooked by the Government.
What can businesses do to prepare for economic challenges?
While businesses may feel overlooked by the Government, they should know that they are not alone.
Seeking professional financial support is a good way to manage rising economic challenges, as there are a lot of considerations that must be made.
Without being too doom and gloom about things, the situation that businesses were already dreading is going to be more difficult as a result of global instability.
However, effective budgeting will be even more vital than it was previously.
Leveraging your working capital to be better resilient in the face of additional challenges will be part of what determines whether a business will survive the coming months.
Our team is on hand to support you regardless of the global economic situation.
We work with your business to highlight how pressures may affect you and offer advice on the best way to mitigate the impact.
Restore your confidence after the Spring Statement by speaking to our team today.
