"SME's are under immense pressure, and additional support is crucial. The November Budget remains a crucial moment for the UK's 5.5 million small and medium-sized enterprises. Many SMEs are already operating with tight margins, and the increase in employers' National Insurance Contributions (NICs) and the minimum wage have created a challenging environment for investment or hiring. The Budget includes measures to support micro-firms, such as the lowered tax rates for 750,000 retail, hospitality and leisure properties."
"However, in this Autumn Budget, the UK government has committed to permanently lower multipliers, especially for retail, hospitality and leisure sectors. This change is intended to strengthen smaller businesses and help revitalise high streets. Yet, larger businesses, such as big department stores and hotels, may face significantly higher business rates due to a new, higher multiplier on high-value properties. Many smaller businesses have been struggling with rising costs, particularly business rates."
SMEs across the UK face tight margins, rising costs, and constrained capacity to invest, hire, or grow. Employers' National Insurance Contributions and an increased National Minimum Wage have heightened payroll and operating pressures. The November Budget lowers tax rates for about 750,000 retail, hospitality and leisure properties and commits to permanently lower multipliers for these sectors to support micro-firms and high streets. Business rates remain a major cost pressure that hampers new entrants and creates adverse cash flows. Inflation in services is projected to stay elevated into 2025–26, and the National Living Wage will reach £12.71 by April 2026, increasing payroll costs.
Read at London Business News | Londonlovesbusiness.com
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