Small Business Impact: How the Autumn Budget 2024 Could Change the Game
- Novus
- Oct 31, 2024
- 2 min read
As a small business ourselves, we at Novus Marketing Solutions are no strangers to the financial ups and downs of the budget season. With the Autumn Budget 2024 now on the table, we’ve taken a close look at how it impacts small businesses like ours – the good, the bad, and the unexpected.
The Upsides
The Budget brings some beneficial measures for small businesses, including a solid R&D tax relief set at 19%, which is perfect for businesses in tech or innovation sectors. The annual investment allowance remaining at £1 million is another win, giving us the breathing room to make big purchases without worrying about tax implications.
On the contracting side, the extra funding for public sector projects might mean new work opportunities for small businesses able to tap into public sector needs. And that’s not all – the freeze on income tax thresholds also means we’ll be holding onto slightly more from our business earnings than if rates had gone up.
The Challenges
On the flip side, higher payroll costs are on the horizon, thanks to the increased National Living Wage. For a business that values every team member, this could mean adjusting budgets or even rethinking some roles. Energy costs remain high as well, and while we’re keeping an eye on grants for energy efficiency, there’s no immediate relief here.
The potential end of the fuel duty freeze could also be a tough hit for businesses that rely on transport, such as local retail and delivery services. Plus, changes to capital gains tax could complicate things for small business owners planning to sell or pass on their businesses in the coming years.
A Personal Perspective
As a small business ourselves, we see the positives and challenges of this Budget. We’re committed to supporting our team with fair wages while also making the best of opportunities for growth through R&D and sector partnerships. Like many of our peers, we’ll be watching for updates on capital gains tax and other measures that could reshape our longer-term planning.
The Autumn Budget is certainly a balancing act for small businesses. We’re excited about the growth prospects but cautious about the rising costs. For any small business out there, this is a time to budget smartly, stay adaptable, and keep a keen eye on opportunities for savings and growth.
