Budget 2024: Impact on SMEs and Small Business Owners

The recent Budget announcement marked a pivotal moment—an early move by the new Government to outline their vision for progress. But how does it stand up for small businesses?

It’s fair to say that the outcome could have been worse for small business owners and SME leaders, but it certainly could have been more supportive too.

The Chancellor’s address did include some encouraging points, and the intentions behind it were clear. Significant public investment is undeniably needed, and that message came through. Yet, the reality for the small business and SME sector—which makes up over 95% of businesses in the UK—is that they will be bearing much of the cost, with no substantial new support to offset these impacts.

There were some positives worth mentioning: no rise in VAT, fuel duty remaining unchanged, and an increase in the employer’s allowance from £5,000 to £10,500. These are steps in the right direction.

However, challenges remain, particularly for small business owners with employees. One source of frustration leading up to this Budget was the language around ‘working people,’ implying that small business owners don’t fall into that category.

The reality couldn’t be further from the truth. From my perspective, some of the most dedicated workers are those who run their own businesses. They often put in far longer hours than most employees and, when times are tough, they’re the ones who go without pay.

Despite the focus on business, innovation, and the value of small enterprises, there was little recognition of the everyday struggles faced by small business owners. While the push for growth and innovation is admirable, we need policies that truly reflect the realities and challenges of running a small business.

As ever, we’ll continue to monitor the practical outcomes of these changes and focus on guiding our clients and supporting our team at O’Brien Media through the road ahead.