Understanding the New UK Budget: Implications for Small Businesses and Late Payments
As we continue to navigate through uncertain times, the recent UK budget announcement has brought about changes that will have a significant impact on small businesses. At Darcey Quigley & Co, we understand the challenges that businesses face when it comes finances, government policies and the affect they can have on cashflow.
On October 30th, 2024, Chancellor Rachel Reeves set out her main priorities for the UK Budget.
Here are some of the main points affecting businesses:
- Increase investments and build new infrastructure
- Improve employment prospects and skills
- Launch long term modern industrial strategy – expanding opportunities for SMEs to grow
- Drive innovation and protect record funding for research and development
In this blog we will discuss in more detail the changes that small businesses will face following on from the new UK Budget.
It was announced that there will be a rise to employers’ National Insurance. From April 2025, employers will pay 15% in National Insurance on their employees which is a rise of 1.2%. As well as this, there has also been a reduction in the secondary threshold for when employers must pay this, with a decrease from £9,100 to £5,000. Businesses in Retail, hospitality and leisure industries will be pleased to welcome the change offering permanent relief on business rates. It was announced in the UK budget that the current 75% discount to business rates is due to expire in April 2025 and replaced by a permanent discount of 40% (up to a max of £110k per business) for businesses in those industries.
Additionally, the budget includes provisions for strengthening the Prompt Payment Code, which encourages businesses to pay their suppliers on time. This is a welcome development for small businesses, as it will help create a more sustainable business environment where timely payments are prioritised.
We understand that the new budget may bring about uncertainties and challenges for small businesses, which is why we are here to offer our expertise and guidance. Our team of dedicated professionals are committed to providing personalised solutions to meet the unique needs of each client, ensuring a smooth and seamless debt recovery process.
As we look towards the future, it is essential for small businesses to stay informed to manage their finances effectively. It is also vital for businesses to stay proactive following the budget announcements, and the first step is to understand how these changes affect your business. By staying ahead of the curve and seeking support when needed, businesses can navigate the changing landscape with confidence and resilience.
If you are a small business owner grappling with the impact of late payments and the new budget, don’t hesitate to reach out to Darcey Quigley for expert assistance. Speak to one of our friendly commercial debt recovery specialists on 01698 821 468 or alternatively book a call here.
Lynne is the Founder and CEO of Darcey Quigley & Co.
She is passionate and determined to help businesses get overdue invoices paid quickly.
Having worked within the credit management industry for over 27 years and ran UK leading commercial debt recovery specialists Darcey Quigley & Co for over 17 years, Lynne has helped businesses recover commercial debts from every continent across the globe.
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