Tony Hedger, President of Worthing & Adur Chamber shares his thoughts on the recent Autumn Budget

The dust is settling on the 2024 Autumn Budget and the reaction from the small business sector has been interesting. Bust or boost? And how are firms going to finance operations and investment into 2025 and beyond?

Budget 2024: bad, good, somewhere in between?

The build-up to the Budget featured plenty of doom-mongering, and there were some tough measures for businesses, but at the same time, there were positives, not least a widespread focus on increasing investment. So, really, a mixed bag.

The rise to employers’ national insurance and the increase in the National Living Wage were the bad points for small businesses, both of which sparked some significant knee-jerk reactions involving claims of layoffs, redundancies and closures.

Heaping more pressure on cash flow and profit margins is the last thing small businesses wanted from the Budget and on the surface these measures do add to the burden. But it is worth pointing out that small businesses have been shielded to some degree from the rise in employers’ national insurance contributions through an increase in the related employment allowance.

There was also some good news with regard to business rates. Although the wide-ranging reform that the small business sector wanted didn’t materialise, retail, hospitality and leisure properties will benefits from lower rates, while the 40% relief framework will stay in place in the short term. Yet another review of the system has been promised by the government.

Aside from business rates, the reaction to the treatment of the corporate tax system has been largely positive, with important investment reliefs remaining in place. The targeting of greater stability has been praised here. Increased investment in workplace training and protection of R&D tax relief has also been welcomed.

Following our recent survey the main area of concern for our members is uncertainty and instability. Only time will tell if this budget has done anything for business confidence or if those business’s still feel uncertain for the future.

One thing we can absolutely reassure businesses of is that we are here to raise the voice of business in Worthing and Adur loud and clear and will continue to do so.