Budget 2024: What It Means for Businesses and Workforce Planning
The UK’s 2024 Budget presents both challenges and opportunities for businesses, especially in the realms of workforce management, wages, and financial planning. Here’s a breakdown of key changes and their potential impacts:
1. National Insurance (NI) Increase
Starting April 2025, employer NI contributions will rise from 13.8% to 15%, with the threshold dropping from £9,100 to £5,000. This will notably increase payroll expenses, especially for larger businesses. However, small businesses may benefit from an increased Employment Allowance, up from £5,000 to £10,500, potentially helping over 865,000 businesses avoid new NI costs entirely
2. National Living Wage (NLW) and Minimum Wage (NMW)
The NLW will increase to £12.21 per hour from April 2025, boosting annual earnings by more than £1,400 for full-time employees. Although beneficial for employees, this rise adds financial strain for employers, particularly small businesses. Companies may need to evaluate workforce structures and implement efficiencies to absorb these costs
3. Support for SMEs
The Budget introduces measures to help small and medium enterprises manage rising costs, including expanded Employment Allowance eligibility and additional grants for workforce development. These resources could help SMEs attract diverse talent pools, including skilled ex-military personnel, while meeting corporate social responsibility goals
4. Sustainability Incentives
The Budget’s green initiatives aim to encourage companies to adopt sustainable practices. Businesses taking advantage of these incentives may find it beneficial to hire veterans with experience in resource management and logistics—skills that align well with sustainability goals
5. Flexible Workforce Management
Given economic uncertainties, the Budget encourages companies to adopt flexible workforce models to remain agile. Veterans, experienced in dynamic roles, can contribute valuable skills to temporary and project-based roles, supporting workforce resilience amid economic shifts
These Budget changes offer businesses an opportunity to refine their workforce strategies, balancing higher costs with new possibilities for sustainable, efficient, and diverse hiring.
Moving Forward
In light of these Budget changes, businesses must refine their workforce strategies to balance rising costs with the potential for growth and sustainability. At One Way or Another Ltd, we are dedicated to supporting organisations by connecting them with high-performing ex-forces personnel. By doing so, we aim to contribute to building diverse and inclusive workplaces that foster resilience and adaptability.