With Labour’s Budget approaching on 30 October, uncertainty looms for many businesses.
Prime Minister Sir Keir Starmer has already hinted at a “painful” Budget.
Changes to taxes, public services funding, and investment incentives could affect how businesses need to operate, so they must be ready to adapt.
What might be coming
Labour is aiming to fix fiscal imbalances while ensuring businesses contribute fairly to public funding.
While Income Tax, VAT, and National Insurance contributions (NICs) are off the table, there is talk of tweaks to other areas.
Tax reliefs like research and development (R&D) credits or capital allowances could see changes.
Wealth and dividend taxes might rise, potentially increasing the load for business owners and shareholders.
On a brighter note, the Government is keen on green initiatives and social enterprises.
Expect incentives or grants for businesses restructuring to help with their environmental or social goals.
Is it time for a restructure?
With potential tax and regulatory shifts, now might be the right time to rethink how your business is structured. Here are a few reasons why:
Flexibility in a changing market
Restructuring can make your business nimbler, and better equipped to tackle new challenges or grab fresh opportunities.
Smaller, autonomous teams make decisions faster and can respond to market changes more easily.
A few strategies to consider:
Optimising your resources
With a lack of stability surrounding tax reliefs and incentives, it is smart to reassess where and how you allocate resources. Focus areas might include:
Attract and retain top talent
With potential changes in employment law and tax treatment of executive pay, adapting your talent strategy can help you stay competitive.
For more insights or help with restructuring before the Budget, get in touch with our team.