News & Events
Rowleys’ Budget event highlights evolving business confidence
21st November 2024
On Monday 4th November, Rowleys hosted an insightful Budget event as part of the Leicester Business Festival, attended by over 60 businesses from across the East Midlands. This event came on the heels of the first Budget announced by the new Labour government following the recent general election. Rowleys’ tax experts shared a comprehensive analysis of the Budget’s key changes – covering areas like personal tax, inheritance tax (IHT), pensions, and business tax – providing businesses with practical guidance on how the changes are likely to impact them.
Comparing business sentiment: March vs. November
As well as a practical update on the key Budget announcements, Rowleys’ event included interactive polling to gauge attendees’ responses to key issues, providing an opportunity to compare business confidence with the responses gathered during Rowleys’ previous Budget event in March. While the March event focused on anticipated changes following the Conservative Budget, the November gathering centred around Labour’s forthcoming economic plan. The comparison reveals shifting perspectives on the economic landscape and highlights how current uncertainties are shaping business decisions.
- Anticipated impact of Budget announcements
Businesses expressed mixed confidence about the impact of Labour’s Budget announcements. At the November event, 65% of attendees felt somewhat confident that these changes would impact their plans over the next year, while 35% felt less certain. This marks a shift from March, when the majority believed that Budget changes would have minimal impact. This difference likely reflects greater caution in adapting to the latest announcements made by the Labour government. - Long-term and investment decisions
In the context of Labour’s economic policies, businesses are showing increased hesitancy around long-term planning and investments. When asked if they were holding back on such decisions, 37% of attendees at the November event said “yes”, 47% said “no”, and 17% were undecided. In March, only 28% of attendees were holding back on investments, showing that economic confidence has tapered slightly with the political transition. This growing caution may be due to the new government’s policies, which include changes to Employers’ National Insurance Contributions and the proposed adjustments to Employment Rights that are currently in draft form. - Top business concerns for the next 12 months
Responses to key challenges expected over the next year highlighted both ongoing and emerging concerns. At the November event, 59% of attendees cited rising costs as their primary issue, a slight drop from 66% in March, suggesting that while the economic backdrop and expenses remain top concerns, Labour’s policies are bringing fresh challenges to the forefront. Recruitment and the availability of skilled workers were identified by 31% of attendees, down from 56% in March, possibly indicating easing staffing pressures. However, economic uncertainty and access to finance, impacted by potential shifts in policy, were noted by 6% of attendees, while 3% cited supply chain security. Notably, none of the attendees at the November event identified technology development as a challenge, a shift from 25% in March. This suggests that AI and other technologies may now be less of a concern as businesses may have begun to implement them.
Resilience and adaptation
Despite the uncertainties introduced by the new government, businesses are demonstrating resilience and a readiness to adapt. The responses reflect a cautious but forward-looking approach, with many businesses prioritising careful planning, strategic investments, and sound tax management to remain resilient. Rowleys’ experts emphasised the importance of aligning business strategies with the Labour government’s policies to navigate the upcoming economic challenges effectively.
Reflecting on the event, Rowleys’ Head of Tax and Partner, Mark Hook, stated:
“We’re delighted to have gathered such an engaged group of business leaders at this year’s Budget event. Compared to earlier this year, it’s evident that businesses are adjusting to the recent political changes and are taking a cautious approach to investment and growth. The resilience we see across the East Midlands is encouraging, as businesses navigate the new policies with adaptability and optimism.”