What does the new government budget mean for my business?

The budget will be being implemented from this April, kicking off Q2 of the year for businesses nationally. There is still a level of uncertainty and confusion for some, so here is some information to offer some clarity!

Increase in minimum wage.

Minimum wage will be increasing notably this year, particularly for the younger workforce. Although the best way to fairly compensate workers, this will inevitably result in higher operating costs for businesses.

Employee training and development initiatives.

Tax relief is being offered and funding to companies that are investing in employee training. This will mean additional costs upfront but will improve workforce skills, productivity and most likely - staff loyalty, making it better for your business in the long term.

Green initiatives.

Businesses will be incentivised to increase their eco-friendly practices, including introducing subsidies for more energy efficient upgrades and possible penalties for those with excessive emissions. Excellent news for the environment but potential additional costs for businesses.

Enhanced worker protections and compliance.

The regulations around employee rights will be increased, such as enhanced protections for flexible working requests, the disposal of 0 hours contracts and contract fairness becoming more robust. This will likely result in higher administrative and HR costs, particularly when initially implementing the changes.

Increased NI contributions.

NIC will increase by 1.2% and the secondary threshold where businesses need to start paying the contribution for their employees is decreasing. This is adding further costs to employment, particularly for companies with larger workforces.

At Swarm Recruitment we can support you with staff recruitment and retention, specialising in Marketing, Finance and Business Support roles nationwide. We can also connect you with the wider Swarm Group, who can support your business with training and apprenticeship requirements.

*Image sourced from bbc.co.uk