Pubs in the UK are facing severe financial challenges. This follows the Chancellor’s recent Budget, which has led to increased business rates. Landlords warn that pint prices could exceed £18 due to rising costs, with some pubs already raising prices by 15-20% and cutting staff hours. The British Beer and Pub Association estimates that England could lose six pubs daily without government intervention.
They are not the only ones having major concerns, however. UK hotels are also reported to be grappling with stagnant profits despite increased demand. This is according to the RSM hotels tracker. Profits remained flat at just over 38% from September to October, with a slight decline in London from 43.3% to 43.1%. Average daily rates rose to £155.03 across the UK and £222.64 in London. A partner at RSM UK, commented that “Hoteliers are having to work harder but are getting less in return.” Rising National Insurance contributions and an upcoming minimum wage increase will put further strain on the sector. This will obviously impact future consumer spending.
iBOSS Comment:
Unfortunately the downward trend throughout the Hospitality Industry in the UK continues and has certainly not been helped by the recent Budget. If your business is one of the many suffering as a result, and you would appreciate professional, experienced advice and guidance then call Phil at iBOSS on 07876 503830 or complete the enquiry form on or web site and ask for one of our free 2-hour consultations.
SMEs are facing increased financial pressures following the Budget. Key changes include rising dividend taxes and the extension of a freeze on income tax thresholds until 2030/31, which will push more workers into higher tax bands, thereby reducing their spending power. Analysts commented that these measures could deter passive investment. They also advised that “It is likely that freezing income tax brackets will put pressure on SMEs both on the demand side and by producing a need to pay higher wages”. The likely result is that margins will shrink and some businesses will become targets for opportunistic local competitors or trade buyers. Experts also suggest that the two percent increase in dividend taxes may deter people from starting a business. The Federation of Small Businesses is saying that “it makes investment in your own business one of the least tax-friendly things you can do with your money.”
iBOSS Comment:
If you are one of the many SMEs that is going to suffer even more as a result of the Budget and would appreciate some help and advice on the best options now available to you to get your business on the road to growth, then call us on 07876 503830. Or e-mail to Phil@theiboss.co.uk and ask for one of our free 2-hour ‘no-strings’ consultations. Alternatively review our web site www.theiboss.co.uk to learn about our services and complete the enquiry form. The same applies if you have been considering starting up a new businessand you’re not sure if it is now the sensible thing to do. Ask about our Interim Management Support services.
A Federation of Small Businesses (FSB) survey of nearly 1,500 small business owners and sole traders warns that thousands of small businesses could be at risk of closure. This is due to declining revenues and rising tax bills. The survey shows that 30% expect to either contract, downsize or collapse over the coming year. The poll revealed that 55% of companies say that their income fell over the past three months, with a £25bn tax raid having an impact. This came after changes in last year’s Budget saw the main rate of employer National Insurance contributions climb from 13.8% to 15%. In addition the earnings threshold reduced to £5,000 from £9,100. Tina McKenzie, policy chair at the FSB, said: “Millions of small businesses shrinking, closing or selling up instead of growing means a vicious cycle of a lower tax take, higher unemployment. Inevitably greater demands on the state will all exacerbate each other in a downward spiral.”
iBOSS Comment:
Yet more arguments for politicians to concentrate support on the growth and economic wealth-earning potential of the Uk’s SMEs rather than taxing them to death and imposing onerous employment laws! Getting the economy back into the black must be the priority!
If you are struggling to maintain the viability of your business; if cash-flow is a serious problem or you are struggling to carry out all of the tasks necessary to grow your business then call us at Independent Business Owners Support Services Ltd. (iBOSS) to discuss your options. We offer a 2-hour free consultation with no strings attached. Just e-mail us at enquiries@theiboss.co.uk or call Phil on 07876 503830 and let’s see how we can help!
The Times reports that, the UK had 5.7m businesses, at the start of 2024. This was an increase of 191,000 from the previous year, according to the Department of Trade & Industry (DTI). It is claimed that this is primarily due to 201,000 new self-employed and one-person companies being registered. Interesting that this is despite a decline of 9,000 in firms employing staff. Jonny Haseldine from the British Chambers of Commerce noted: “It’s really welcome to see the UK’s entrepreneurial spirit created more private businesses in 2024.” However, he warned that many SMEs face “widespread cost pressures” and urged the Chancellor to avoid new taxes on businesses.
iBOSS Comment:
Encouraging news, but how many of these new business owners/managers have the right level of knowledge & experience to make a success of their business? Having a ‘grand idea’ is one thing. Having the ability to make it into a success is totally another! Then there is the question of finance! “Do I have access to sufficient funds to get this business off the ground and to sustain its growth?”.
If you, or someone you know has concerns in either case then come and speak to us and ask for one of our free, ‘no-strings’, Consultations. Simply e-mail us at enquiries@theiboss.co.uk or complete the enquiry form on our web site www.theiboss.co.uk .
It costs nothing to ask!