Issue #95 - Was that a bad Budget for businesses? 💸
A 2024 Autumn Budget Breakdown | Business Insurance FAQs - Your Questions Answered! | 5 Businesses, 1 Question - What makes your small business special to the local community? | Words | Tunes | More
🦾 GO
How was the new government’s first Budget for you? 💼
An increase in employer National Insurance Contributions (NICs) and a lowering of the threshold at which employers need to contribute was the big takeaway from the new Labour government’s first Budget.
There was also an increase in the National Living Wage, and the 75% relief on business rates for hospitality will be cut to 40% from April next year.
You can find more details on the bits that most affect businesses in our 2024 Autumn statement round-up for busy business owners, but let’s have a quick look at what this all might mean and consider why business owners seem to have been targeted by the new government.
On the face of it, the hike in NICs and the lowering of the threshold looks like a big (double) hit for business owners - not only will they need to pay a higher rate of NICs for employees, but the lowering of the threshold means they’ll also need to pay NICs for more employees.
To help alleviate the pressure on smaller businesses, the Employment Allowance will increase from £5,000 to £10,500. This means almost two million businesses will pay the same as or less than they previously did or pay no NICs at all.
As with any tax increases, those on the threshold margins will probably feel it the most. And any business in which the owner is the sole employee won’t get that allowance.
But why go after businesses at all? It seems the Chancellor is using business owners to help claw back the money that was lost when the previous government cut employee contributions. The simple thing would have been to reverse those cuts, but the pledge to “not raise taxes on working people” seems to be one they’re sticking to.
And in making those allowances for smaller businesses, there’s at least a recognition that the bigger businesses can best absorb the costs. That said, we may all end up paying in one way or another, both as small business owners and customers.
Large businesses are likely to pass these increased costs down the line. This could be by directly increasing costs for customers and also putting up prices for smaller businesses further down the supply chain. These businesses - now dealing with higher supply costs, higher salaries, and employee costs - will likely raise their prices too.
Many business owners will naturally feel they’re shouldering the biggest burden from this first Labour Budget. The best we can hope is that the money raised is used to improve essential services that have been neglected and underfunded for years.
And if anyone can explain the point of taking a penny off the price of a pint, we’d love to know.
🤝 COMMUNITY
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🗞 READ
How will the Autumn Statement 2024 affect your business? 💼
The first Labour Budget for 14 years has seen the new government outline its spending plans.
Before the announcement, Chancellor, Rachel Reeves, stated that she plans to reboot the UK economy by focusing on three priorities: Fixing the foundations of the economy, investing in the future, and rebuilding Britain.
But the government also warned there would be “painful” decisions because of a 'dire economic inheritance' left by the Conservatives.
But what exactly does all that mean? And was the budget good for small business owners? We'll report the facts and let you come to your own conclusions.
Business Insurance - Your questions are answered! 🤔
As a small business owner, it’s never easy knowing your next move. Whether you’re hiring more employees at your premises, launching a startup from your kitchen table, or taking your freelancing full-time, understanding the ins and outs of business insurance is key.
At Bionic, we know business insurance can seem confusing. That’s why we’ve gathered the most common questions our customers ask us and consulted with our knowledgeable insurance team to provide you with clear, reliable answers.
🗣 SHOUTOUT
#BionicBusinessStory - 5 businesses, 1 question 🤔
Small businesses are usually a big part of the local community and economy. We asked five small business owners about their role in the local community. Here’s what they had to say:
Bionic - What makes your small business special to the local community?
💇♀️ “I think small businesses are the heart of the high street, they're what make our local communities what they are. From coffee shops to hairdressers and lifestyle stores, they all make where you live that extra bit nicer. We make up a lot of the workforce so it’s important to show support.” Sonya Roberts - Brandon May Hair Salon
💅 “Small businesses bring communities together. They offer a much higher quality product or service and I find the personal service you get from a smaller business is much more meaningful.” Lilac Miller - Sleeping Beauty Salon
🏋️♀️ “I can’t always compete with the prices of high street gyms, but I can offer a superior kit and a gym with a great atmosphere. I have a deep knowledge of the industry and want to see our members achieve their fitness goals.” Tyrone Haughey - Heroez Gymnasium
💪 "Getting to know clients and customers. Get to know names and faces, but also why they're here. Maybe they have a wedding, want to lose weight, or maybe it's just for general health and wellbeing reasons. It's their journey, the coach should buy into the client's journey, not the other way round." Mick Povall - Gravity Health and Fitness
🍻 “I think customer service is what differentiates us from larger pub chains. It’s so important to us. If you walk into the pub and the bartender is like, 'oh, hey, Chloe, same as usual?’, you feel like they know and appreciate you as a customer. We know most of our customers by name and it makes it a much nicer environment for both the customers and staff.” Kate Davidson - The Old Ivy Pub
Want to read more small business stories? Head over to Bionic 🦾
📊 BUSINESS
Get your business costs sorted 💷
Bionic is the comparison site for your small business. We compare a range of business essentials to help you save time, money, and hassle.
Our tech-enabled team will answer all your questions in simple terms, and help you find the best deal on business energy, insurance, phone, broadband, or finance. No jargon. No-fuss. #BeABionicBusiness 🦾
🎧 LISTEN
Playlist 🎶
Two Sevens Deli is a Suffolk-based small business, run by a good friend of The Backbone. Dan, the main man at Two Sevens, has impeccable taste in all things food, drink, and music judging by this playlist. Head on into his shop if you’re in and around Sudbury, or pop this playlist on and sit back with your favourite cheese, charcuterie, and craft beer for the Two Sevens experience at home.
Podcast 🎙
Everyone loves Martin Lewis. The Money Saving Expert has been a consumer champion for more than 20 years (moneysavingexpert.com was launched in 2003!), in which time he’s become a household name and dished out more money-saving advice than even he can probably count. If you’re in need of some personal finance tips (and who isn’t?!), then The Martin Lewis Podcast could be right up your street.
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🚫 STOP
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