Business News Round Up (29/10/2024)
Half of UK business owners pledge to hire if Chancellor boosts Entrepreneur’s relief
Half of the UK’s business owners have indicated they would hire more staff if the Chancellor increases Entrepreneur’s Relief in the upcoming Autumn Budget. In a recent poll of 400 business owners at Helm, 50% stated they would expand their workforce under a more generous Entrepreneur’s Relief scheme. Additionally, 75% expressed that a boost in relief would lead them to reinvest in business growth. The surveyed business owners represent a combined turnover exceeding £8 billion, with the average business turnover among Helm members around £21 million. The findings emerge just a week before Chancellor Rachel Reeves is set to unveil her Autumn Budget at the IMF meeting. Entrepreneur’s Relief, now capped at £1 million from its previous £10 million under the last Conservative government, allows entrepreneurs to pay a reduced 10% tax on profits from selling their businesses. Typically, higher-rate taxpayers face a 20% rate.
Made Smarter passes £25m North West tech investment milestone
Made Smarter, the movement accelerating the digital transformation of SME manufacturers, has backed 23 more North West businesses. Edinburgh Weavers, the world-renowned textile manufacturer based in Bolton; Duo UK, a manufacturer of packaging products based in Manchester and Trekk Vans, a campervan conversion specialist based in Carlisle, are among the latest to secure grants of up to £20,000 towards new technology and digital tools. It means the government-funded, industry-backed initiative has now reached a major milestone, supporting North West companies to invest £25m in new technologies. 330 businesses have now secured £7.1m matched funding over the last six years, adopting technologies as diverse as sensors, robotics, 3D printing and artificial intelligence (AI). These companies have put £18m of private sector investment towards 379 technology projects which are forecast to create over 1,700 new jobs – an average of five each and upskill 3,200 existing roles – almost 10 per business.
https://www.prolificnorth.co.uk/news/made-smarter-passes-25m-north-west-tech-investment-milestone
Businesses face cost of hike for low-paid workers
Businesses are facing another increase in their costs as the Chancellor is expected to give more than a million low-paid workers a pay rise of 6% next year. Those on the minimum wage will get a pay increase higher than the 5.8% predicted, while younger workers will get a bigger increase under moves to equalise rates between age groups. The hike in pay will help underpin the Labour government’s pledge to support “working people” but will hit businesses, particularly those in the retail, hospitality and leisure sectors, and comes on top of an expected increase in employers’ national insurance contributions. About 1.6 million people receive the “national living wage” of £11.44 an hour, the minimum wage for over-21s. The Government wants the Low Pay Commission to guarantee that the national living wage does not drop below two thirds of median earnings.
59% of business leaders report staff absences due to public service issues
59% business leaders say that staff have had to take time off in the last year because of problems accessing public services, according to new TUC polling. The poll of over 500 business leaders shows that they say staff have been absent due to the following public service pressures: Waiting for hospital treatment (35%), Caring for a relative who lacked adequate provision of adult social care (20%), Waiting for mental health care (17%), Unable to access suitable childcare (17%), Looking after a child with special educational needs (16%), Waiting for a work visa to be processed (13%). The TUC says that these responses reflect the toxic legacy inherited from the Conservatives by the new government. The union body is calling on the government to fix the foundations of the economy by repairing our public services so that working days and productivity are no longer lost to these problems.