KBB leaders described the Autumn Budget, focused on stabilising the economy and long-term growth, as “give and take” on a recent industry podcast.

The discussion formed part of the latest episode of The KBB Unstoppable Business Owner Podcast, which was focused on what the budget means for KBB businesses.

Chair of the Kbsa and owner of KSL Richard Hibbert, chief executive of the Bathroom Manufacturers Association Tom Reynolds and Michael Costain, MD of Lyrical Communications which organises InstallerSHOW,  joined podcast host Kevin D. Bannister.

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Chartered accountant Kevin D. Bannister provided an overview of budget headlines, including changes to business rates, corporation tax and National Insurance contributions.

Bannister took a positive look at headline issues, stating while the 75% discount for business rates ends on March 31, 2025, the Government had introduced a 40% discount.

He also said corporation tax remaining at 25% offered business owners “a clearer view” of tax obligations when planning for future investment.

Kevin Bannister further pointed out one of the key changes affecting businesses will be an increase in employer National Insurance contributions, rising by 1.2% to 15%, from April.

Explaining the threshold has also been lowered, Bannister said companies will have to pay NI for employees earning from £5000, as opposed to starting at £9,100.

He says it could increase payroll costs and make owners consider costs when taking on people.

But Bannister also stated Government is upping its employment allowance to offset some of these costs for small businesses.

Michael Costain of Lyrical Communications exclaimed there was “give and take” in his appraisal of the budget: “I  think, from an industry perspective, for bigger businesses the National Insurance increase will affect everyone.

“It sounds like small-to-medium sized businesses won’t be affected as much from the NI increase.

“I suppose the positives are investments in housing, healthcare, schools and the like and there is a freeze on the fuel duty, which is  a bit of give and take.”

Richard Hibbert of the Kbsa agreed, stating: “I’ve never known a government come in and be so negative about taking over…it’s been a lot more relaxed than maybe we thought it was going to be.”

He added: “The National Insurance [increase] doesn’t really affect me because of the allowances for small businesses.

“Britain has always been built on the SMEs, so it’s nice we are protected a little bit on that.”

However he said the rise in minimum wage could affect manufacturers and in turn have a ripple effect up an employee chain, which may be recouped through increasing prices.

The mixed picture was a theme continued by the BMA’s Tom Reynolds, who added: “For us it was a budget of both challenges and opportunities; challenges in respect of the wage bill.

“Clearly the big eye-catching announcement around National Insurance and the figure that we’ve arrived at along with a lot of other commentators is it’s going to cost just over £600 per employee per year for many businesses.

“But as rightly been pointed out, the brunt of that will be avoided by SME’s because of the almost doubling of the allowance for small employers.”

He stated a growth in costs, with 7% increase in the Living Wage and knock-on effect to create differentials in the employment structure will be a challenge.

However, Tom Reynolds also stated that it could be offset by market opportunities for manufacturers, such as the proposed spend of £500million in affordable housing.

He also said the RMI market, which is linked to housing transactions and interest rates, will hopefully pick up

“I think the biggest opportunity comes from for a long period of stability and sustained growth”, said Reynolds.

He added:”Obviously whether that is delivered remains to be seen, but for sure that is something which businesses of all kinds have been craving for several years.

“Certainly by the way the market seems to have reacted to the budget, which is barely at all, suggests the immediate aspiration has been achieved.”

The discussion panel all agreed after the uncertainty surrounding the election, then the budget, it was now “business as usual” and encouraged KBB retailers to “crack on”.

The British Independent Retailers Association (Bira) exclaimed the budget to be damaging, with “a triple blow” of doubled business rates, increased National Insurance and higher minimum wage costs.

A poll currently being conducted by editor of KBN Philippa Turrell on LinkedIn, has revealed 46% of KBB professionals are currently less confident following the budget.

However, Richard Hibbert stated despite the downplayed economy, leading up to the  budget, retailers and manufacturers who attended the recent Kbsa Conference were positive about next year.

He stated on LinkedIn: “If we rely on the Government to change our fortunes we may as well close now. SMEs have always been the heart of the UK and will continue to be.”

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