12 IN VIEW
BEARING THE BRUNT
Chancellor Rachel Reeves unveiled a massive £40bn package of tax rises as she pledged to “restore economic stability”.
As widely predicted, employers’ National Insurance contributions were high on her Budget target list as businesses bore the brunt of the rises.
A package of investment measures was also unveiled in her speech. Overall, the chancellor revealed, the government will invest £100bn in capital spending over the next five years.
We asked business leaders for their take on the Budget, which, as well as the NI hike, also included a rise in the National Living Wage and increases to the rate of Capital Gains Tax, while inheritance tax relief for farms will be limited to £1m.
Miranda Barker, chief executive of East Lancashire Chamber of Commerce
We are concerned about the Budget’s downward pressure
on employment, with increased costs of staff for SMEs across multiple factors including the National Insurance rate and threshold, and minimum wage increases.
We can only hope that the government’s promise of taxation pain for investment gain comes to fruition.
Neil Evans, managing director of Burnley manufacturer VEKA
The rise in minimum wage, employer National Insurance rate and threshold reduction are not insignificant for businesses like ours – a large family- owned business, and key employers in the region. The NI decision alone takes around £500,000 from our bottom line.
Much like the chancellor, businesses will need to look at how they can cover these extra costs without compromising on the quality of products and services offered or the critical investments needed to ensure growth. It’s simple, if businesses absorb these costs, there is less to invest.
Whilst the government state the Budget supports strong future growth for the UK economy, it is not so clear how, or when, this is delivered.
Without substantial productivity gains, not previously seen in UK industry, increased costs can only starve businesses of much needed cash to support day-to-day business, the support we provide our workforce and future investments. We’d rather be able to directly drive business innovation and competitiveness, supporting working families.
It raises questions as to how this will be managed and what impact it will have on the wider supply chain and pricing. Inevitably and sensibly, increases are passed on through price rises for goods and services, ultimately affecting the consumer market and the money in people’s pockets.
BUSINESSES THRIVE TOGETHER
As the deputy principal at Burnley College, I have a front-row seat to the most dynamic conversations shaping our region’s future.
We’ve just held the inaugural Thrive Summit, a gathering of over 75 industry leaders, which offered an invaluable opportunity to reflect on how, post-election, we can create a business and manufacturing ecosystem in Lancashire that is both flexible and resilient.
We saw first-hand the power of collaboration; from one-person enterprises to global manufacturing leaders, everyone came together under one roof to share insights and strategies. Companies like Quest Electrical Ltd, Fort Vale Engineering Ltd, and
Boohoo.com represented the diversity and strength of our region’s economy. What truly stood out was the collective commitment to embracing change and fostering innovation.
Being flexible
In our ever-evolving economic landscape, adaptability is the key to survival and success, allowing everyone to become more flexible as they can plan for the future.
Education is the cornerstone of this vision. By linking our curriculum to the needs of businesses, we bridge the gap between academia and industry. We ensure that our students, apprentices and graduates are more than just employable, they are the catalysts for innovation. The diverse array of organisations present at the Thrive Summit, from Edge Hill University to the East Lancashire Chamber of Commerce, exemplifies the commitment to this educational synergy.
Thriving
Kate Wallace, Deputy principal at Burnley College
Businesses that thrive are those that can adjust, responding deftly to new technologies and market demands.
At Burnley College, we believe education plays a pivotal role in this adaptability. By nurturing a dynamic and innovative workforce, we can ensure that our industries are prepared for the future. Even more so, they are actively shaping it.
www.burnley.ac.uk
So what did I take away from the Thrive Summit? I saw a future where Lancashire businesses are not isolated entities but part of a thriving network that supports continuous growth and innovation, harnessing the collective knowledge shared at events like Thrive to inspire actionable change today.
Let’s continue to foster these connections and embrace the shared vision of a resilient and innovative Lancashire. The future is bright, and together, we can ensure it stays that way.
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