Monthly Archives: October 2024

Accountancy & Accounts, Accounts and Accountancy, Business, Economy & Jobs News, FInance, Finance and Banking, Finance News

Tax rises and complicated tweaks piles pressure on businesses

  • Multiple small tax changes announced at the Autumn Budget will create complexity for accountants and businesses
  • Small businesses will be feeling the pressure of new tax changes announced

 

ACCA, the leading global accountancy body, noted that while a commitment for greater stability in public finances is welcomed, including the alignment of economic strategy, a corporate tax roadmap and spending plans, it remains to be seen whether the announcements provide a much-needed boost to business confidence.

 

The changes announced continued the pattern of opaque changes to taxes, such as shifts to thresholds, to boost tax take in the short term, while avoiding long-overdue reform of our tax system, which will be necessary to create a long-term approach to investment and innovation.

 

Lloyd Powell, head of ACCA Cymru/Wales, said: “The focus on investment, economic stability, boosting growth and supporting public services are welcomed – with £1.7bn of additional funding for Wales though the Barnett Formula, the announcement on support for coal tips and a green hydrogen project in Bridgend.

 

“However, although partially offset by changes to allowances, the impact of the £40bn of increased taxes announced – including on Employer National Insurance contributions and thresholds and Capital Gains Tax – will be felt by many businesses across Wales. Business confidence, critical to encourage investment and stimulate growth, has been in short supply in recent months. Following these announcements, it’ll be more important than ever for these businesses to seek the advice of their accountants; to ensure they comply with changes, as well as refocusing business growth plans.

 

“Workers across Wales will welcome the decision not to increase Fuel Duty and to unfreeze Income Tax and NI thresholds from 2028/29.

 

“With a wide range of tax changes announced, the Chancellor should have gone further on simplifying the tax system, with the changes announced arguably adding to existing complexity.”

 

Glenn Collins, head of technical and strategic engagement, ACCA UK, added: “The UK tax landscape is already too complex, and yesterday’s announcements do little to address this. At a time when we need to see a longer-term approach to our tax system to support investment, we have seen more short-term adjustments to raise revenue, adding yet more complication. ACCA has repeatedly called for the government to commit to a programme of tax simplification and it was disappointing not to hear more about that from the Chancellor.

“Expectations were high ahead of the Budget. Ultimately it has left some questions unanswered, perhaps until the next phase of the spending review in spring 2025. Whether this will provide the clarity and certainty business needs remains to be seen.”

Economy & Jobs News, Finance News

Quantum Advisory comment on Autumn budget

Today’s budget has made history, with it not only being the first Budget announcement made by a Labour led government in over 14 years, but also the first ever Budget to be announced by a female Chancellor.

In this year’s Autumn Statement, the Chancellor Rachel Reeves, announced the steps the government propose to take in order to restore economic stability and plug the £22 billion reported black hole in the nation’s finances.

Increase in Employer National Insurance contributions and a decrease in the National Insurance threshold

Employers currently pay National Insurance contributions at a rate of 13.8% on employee earnings above the £175 per week threshold.

It has been announced today that the rate of Employer National Insurance contributions from April 2025 has increased by 1.2%, to 15.0%. Separately the £175 per week threshold under which employers start paying tax has been lowered to £96.15 per week. This is expected to raise in excess of £20bn of revenue for the Government.

In order to mitigate the effect of this on small businesses, the Chancellor did also announce that the employment allowance will rise from £5,000 to £10,500.

Sarah Garnish, a Consultant at Quantum Advisory, said:

“Whilst ‘working people’ pay packets will not be directly affected, this change could indirectly affect employees. For instance:

  • Employers reducing future salary increases in order to recuperate the additional costs.
  • A decrease in recruitment drives from companies leading to an increase in unemployment.
  • A potential decrease in business confidence leading to stifled growth.
  • A rework of existing pension contribution structures to recuperate the additional costs. This could either be a reduction in DC pension contributions or more of the NI saving from salary sacrifice schemes going to employers rather than employees.

“However, looking at the change specifically from a salary sacrifice pensions point of view, the increase in the Employer National Insurance rate makes providing a pension provision for employees more attractive for employers where pension contributions are paid via salary sacrifice.”

Inclusion of DC pension pots within Inheritance Tax

From 6 April 2027 unused pension pots and death benefits will be included for inheritance tax purposes. It is thought that this will affect a small percentage of estates each year.

On paper this somewhat restores the principle that pensions should not be a vehicle for the accumulation of capital sums for the purposes of inheritance.

 

Pensions triple lock retained

The triple lock will be applied in full to the State Pension in April 2025. This means that pensioners will receive an increase in line with the growth in national average earnings of 4.1%, ie an increase to the full State Pension of up to £470 pa.

In comparison this compares to a CPI inflation index growth statistic of 1.7% pa.

Sarah Garnish, a Consultant at Quantum Advisory, said:

“This year’s State Pension increase illustrates the value of the triple lock with the pension increasing by £470 pa whereas it would have only increased by £195 if it had been CPI-linked in isolation. This will come as somewhat of a relief to those pensioners in receipt of a state pension, who are struggling with the current cost of living and the recent cut in the winter fuel allowance.

“There remain larger discussions to be held on the State Pension in the future however as the structure is widely expected to be unsustainable in the long term, particularly with future demographic changes.”

What next for pensions?

The 2024 Autumn budget was prefaced with significant speculation on what may happen in the pensions landscape with some speculation reaching the front pages of the UK tabloids as recently as a week ago.

James Bird, a Consultant at Quantum Advisory, said:

“Discussions in the media around potential employer pension contribution taxation and a decrease in the maximum tax-free cash lump sum available ultimately proved more to be a lesson in how uncertainty in the pensions industry can drive consumer behaviour. For example, there is evidence that some individuals accelerated their tax-free cash lump sum plans and will now need to consider how to invest these tax-free cash lump sums to not make a loss.

“Overall, the pensions industry is in a finely balanced position as it is widely accepted that the majority of current pension systems will not provide a sufficient level of income for members in retirement. This has led to the Government initiating a review into pensions adequacy, balancing this with their desire to use pensions investment to boost growth in the UK economy.

“It was well reported before the budget that the Chancellor is an adept chess player and has learnt how to think several steps ahead through the game. At this stage I expect that the Chancellor has elected to make simpler changes elsewhere to recoup the current reported deficit in the nation’s finances at this stage. The wider stage to consider then how the pensions landscape will need to adapt will play out on the chessboard over the next years.

“With that said, the battle may have got significantly harder now that employer costs have increased further as part of this budget”

 

 

Economy & Jobs News, Export, Finance and Banking, News

“A budget that forgot exporters”, says Cambridgeshire CEO

Simon Kenney, CEO of advanced materials and metals specialist Goodfellow, explains why Labour’s first budget back in power has left exporters feeling left behind.

“As an exporter of 90% of our advanced materials and metals, I think it’s fair to say that there wasn’t a lot in the budget to boost international trade. We can only hope that there will be more detail and hopefully some positive news to follow.

“I would have liked to have seen more information on closer ties with Europe, something that had been mentioned in some of the briefings. This is our second biggest market and, since Brexit, I believe we are spending more than £250,000 as a company on additional labour and duty just to cut through some of the red tape and admin we face.

“This is not sustainable in the long-term and we would welcome any initiatives that smooth out that vitally important trading relationship.

“The Capital Gains Tax rate was an expected move but will hit investors and entrepreneurs. This is on top of changes made in 2020 by the previous government who reduced the lifetime allowance for Entrepreneur’s relief from £10m to £1m, adding an additional £900k in tax for some people.

“We have a strong acquisition policy, and this could potentially slow exits from owners waiting for a more favourable tax position, despite this being unlikely in the near term.”

 

Business, Economy & Jobs News

Chambers Wales South East, South West and Mid comment on Autumn Budget

Gus Williams, interim CEO at Chambers Wales South East, South West and Mid, said:

“This was always going to be a difficult budget. The headlines are going to be the £40bn increase in taxes which was inevitable given pressures caused by demographics – an ageing population – increasing numbers of people not participating in the workforce, and the need for long term public investment.

“The approach has been to try and spread the additional tax burden as widely as possible without touching income tax or VAT, focusing on those taxes that provide most certainty that the rises will increase the tax take in the short term. This means changes to Employers NI, inheritance tax, agricultural and business disposal relief, Capital Gains Tax, second home stamp duty, abolition of the non-dom regime, air passenger duty, tax on vapes, VAT on private schools.

“Changes to Employer NI, just increasing the rate to 15% and reducing the threshold from £9,000 to £5,000 rather than including pension contributions means a slightly lower rise in Employers NI than had been flagged, and makes sense as it retains the pension contribution incentive. But it will be a burden to businesses, particularly in some sectors where wages are at the lower end and where staffing costs are a high proportion of overall costs.

“The increase in the National Minimum Wage and increases to Employers NI will undoubtedly squeeze small business margins, and small business will want to see evidence of government investment, and other initiatives that grow the economy and increase opportunities to counter this squeeze on margins – or the cost pressure on small business could have consequences on hiring and investment.

 

“Some will be upset about the increases in Capital Gains, but it is worth noting that the rises in CGT broadly take us back to where they used to be, there are various exemptions and rules which we will need to look into before providing a full assessment.

“Freezes on small business rates and reductions for the hospitality and leisure sectors are something the Chambers of Commerce lobbied hard for, and are welcome.  The infrastructure investment plans appear sensible, well thought out and achievable rather than just aspirational.  The reduction in draft alcohol duty is welcome news for pubs.

“Changes to inheritance tax for agricultural and business property will impact succession and tax planning for a number of small business owners, and it is important that all small business owners make sure they have a succession or exit plan in place.

“The slight of hand in all this is that a lot was made of personal allowances increasing in 2028 – it’s currently 2024.  The ongoing freeze in personal allowances until 2028 combined with the national minimum wage increases will push more tax revenues into the Treasury, and this is probably where a significant chunk of the additional tax take will over the course of this parliament will actually come from.

“The real test will be whether the government can deliver efficiently on its investment plans, makes the right decisions on capital spending, can deliver genuine reform to the planning system, and can tackle the impact of those not working and particularly not working due to long term sickness.”

Accountancy & Accounts, Accounts and Accountancy, Economy & Jobs News, FInance, Finance and Banking

Budget 2024; Did Halloween come early? Hear the reaction from the Hazlewoods Cardiff Tax team

Tax partner Nick Haines and his team have been analysing yesterday’s announcements from Westminster. Nick states: “In the first Labour Budget for 14 years, there was much trepidation as to the level of tax increases, despite the manifesto pledge not to increase national insurance, income tax, VAT and corporation tax. As it turned out, the Chancellor, Rachel Reeves, announced measures to raise an additional £40 billion in tax per year, by the end of the five-year forecast period, which is a frightening figure, in keeping with the time of year.

 

“Due to the manifesto pledge, the Government was limited in the areas it could attack, but where they could, they most definitely did.

 

“Capital gains tax, which was always going to increase, went from the current 10% rate for basic rate taxpayers and 20% for higher and additional rate taxpayers, to 18% and 24% respectively, matching the current rates on residential property gains, which remained unaltered.

 

“There were also fears over the abolition of business asset disposal relief, although it survived at £1 million of lifetime gains, but with the rate increasing from its current 10%, to 14% from April 2025 and 18% in April 2026. The maximum benefit, therefore, from 2026 will be £60,000, as opposed to the current £100,000.

 

“Individuals who receive carried interest (mainly private equity investors), saw the rate increased from 28% to 32% from 6 April 2025, but with the intention of aligning it to income tax rates from 6 April 2026.

 

“It is well understood that capital gains tax is a ‘voluntary’ tax; if you don’t sell, you don’t pay, so it will be interesting to see if the increase in rates cause a behavioural change, with individuals holding out for a hopeful reduction at some point in the future, which would then cause a reduction to the receipts for the Exchequer.

 

“The biggest revenue raiser was the increase in employers’ national insurance, from 13.8% to 15% from 6 April 2025 and reducing the threshold at which employers pay it, from £9,100 to £5,000. Smaller businesses were given some relief by an increase in the employment allowance from £5,000 to £10,500, removing those with, potentially, up to four employees, from incurring a liability. This measure will generate an additional £20 billion per year by the end of the five-year forecast period.

 

“Whilst not a direct tax on ‘working people’, the consequence of such a measure is likely to be an impact on future salary increases, so ultimately it may well be a tax on those people Labour vowed to protect.

 

“Inheritance tax was also attacked, with business property relief and agricultural property relief limited to 100% of £1 million, with the remainder only qualifying for relief at 50%, whilst investment in AIM listed shares and other alternative markets will only be eligible for 50% relief.

 

“Whether this measure impacts the ability for family companies and farms to be passed on through the generations, without placing an undue financial pressure on the family or businesses in question, remains to be seen. Given this measure only raises £500 million, it is hardly a significant revenue raiser, but could severely hurt an important part of the UK economy.

 

“Pensions, which have been exempt from inheritance tax since April 2015, are to be brought back into the tax net from April 2027. This was the only announcement affecting pensions, whereas prior to the Budget, there was nervousness about the 25% tax free lump sum and tax relief on pension contributions, along with national insurance on employer pension contributions, so perhaps it should be considered we got off lightly.

 

“Stamp duty land tax did not escape either, with the surcharge for additional dwellings increasing from 3% to 5% in England and Northern Ireland. It will be interesting to see whether Wales will follow suit, with the additional rate for land transaction tax already at 4%.

 

“VAT on school fees from January 2025 was confirmed, as was the abolition of the non-domicile tax regime from April 2025. The concern with these measures will be the potential “for private schools to reclaim significant amounts of VAT for expenditure incurred before registration, along with the potential emigration of those impacted by the non-domicile changes. Given the policy costings indicate a peak for the non-domicile abolition of £5.9 billion in 2027/28, which then drops to £85 million by the end of the five year forecast, it would appear as though the Government is well aware of this risk.

 

Corporation tax is ‘as you were’ with the maximum 25% rate confirmed until the end of parliament, whilst the annual investment allowance and full expensing regime will both be maintained.”

 

So with revenue raised, where is it all going?

 

Bruce Black, Hazlewoods Tax Director advises “Well, firstly, the Chancellor had to plug the £22 billion black hole, which the above has certainly done, and then some. The next job was to ‘invest, invest, invest’.

 

Housing, schools, the NHS, transport, social care, local authorities; you name it, they’re investing. Furthermore, the Welsh Government will receive an additional £1.7 billion of funding as well as £25 million to keep disused coal tips safe. The Government also committed to funding for 11 new green hydrogen plants, one of which will be located in Bridgend. Some of this funding will come from the surplus generated by the tax raising measures, others through the introduction of their new ‘investment rule’ allowing them to borrow by recognising the value of the investment, as well as the cost, giving a net financial debt figure.  It wasn’t all about the spend, cost efficiency targets were to be set across the public sector to generate more to go into the pot.”

 

Nina Turner, Hazlewoods Associate Tax Director goes on to say “There is no doubt that the UK’s public services are in dire need of a boost and if the allocation of monies are spent wisely, and services are improved as a result, most will accept the tax rises as being a necessary evil.

 

For too long, however, tax rises have not resulted in improved public services.  UK taxpayers are already suffering the highest tax burden for 80 years and this is only set to increase.  Individuals and businesses are tired of not getting value for money, so whilst the Government are saying it is not a quick fix, the overwhelming desire for improvement will no doubt mean the UK public will not have an endless supply of patience before they will want to see some results.

 

Can Labour deliver, or will the increased tax cost actually result in a negative impact on the UK’s growth?  We will all be hoping they can but will continue to fear the worst.”

Economy & Jobs News, Finance and Banking, Finance News

Chancellor Rachel Reeves Unveils Tax and Spending Plans in her first Budget – to Mixed Reactions

Today, Chancellor Rachel Reeves presented her first budget, which is marked by a mix of tax hikes, public spending commitments, and targeted reforms.

Reeves described her 2024 budget as a “reset for our economy,” aiming to lay the foundations for future growth and stability. In her speech, she emphasized the importance of building a “rock of economic stability” to strengthen the UK’s position internationally.  We explore the key measures and share initial reactions below:

Key Measures Announced:

Personal taxes

  • Rates of income tax and National Insurance (NI) paid by employees, and of VAT, to remain unchanged
  • Income tax band thresholds to rise in line with inflation after 2028, preventing more people being dragged into higher bands as wages rise
  • Capital gains tax (CGT) rates will also see an uplift, with the lower rate increasing from 10% to 18% and the higher rate from 20% to 24%, targeting wealthier individuals and businesses. According to the Institute for Fiscal Studies, the CGT changes would mainly impact the wealthiest 1%, with two-thirds of the revenue coming from just 12,000 individuals​.
  • Rates on profits from selling additional property unchanged Inheritance tax threshold freeze extended by further two years to 2030, with unspent pension pots also subject to the tax from 2027
  • Exemptions when inheriting farmland to be made less generous from 2026
  • From April 2027, pension pots will come within the scope of inheritance tax (IHT). This move is part of an effort to close loopholes and is expected to raise substantial revenue for the government. It means that passing on pension wealth could now be subject to a 40% tax, similar to other inherited assets​.

Business taxes

  • Companies to pay NI at 15% on salaries above £5,000 from April, up from 13.8% on salaries above £9,100, raising an additional £25bn a year
  • Employment allowance – which allows smaller companies to reduce their NI liability – to increase from £5,000 to £10,500
  • Tax paid by private equity managers on share of profits from successful deals to rise from up to 28% to up to 32% from April
  • Main rate of corporation tax, paid by businesses on taxable profits over £250,000, to stay at 25% until next election

Wages, benefits and pensions

  • Legal minimum wage for over-21s to rise from £11.44 to £12.21 per hour from April
  • Rate for 18 to 20-year-olds to go up from £8.60 to £10, as part of a long-term plan to move towards a “single adult rate”
  • Basic and new state pension payments to go up by 4.1% next year due to the “triple lock”, more than working age benefits
  • Eligibility widened for the allowance paid to full-time carers, by increasing the maximum earnings threshold from £151 to £195 a week

Transport

  • 5p cut in fuel duty on petrol and diesel brought in by the Conservatives, due to end in April 2025, kept for another year
  • £2 cap on single bus fares in England to rise to £3 from January,
  • Outside London and Greater Manchester Commitment to fund tunnelling work to take HS2 high-speed rail line to Euston station in central London
  • Government says it will “secure the delivery” of Transpennine rail upgrade between York and Manchester, after reports ministers were looking to cut costs
  • Air Passenger Duty to go up in 2026, by £2 for short-haul economy flights and £12 for long-haul ones, with rates for private jets to go up by 50%
  • Extra £500m next year to repair potholes in England
  • Vehicle Excise Duty paid by owners of all but the most efficient new petrol cars to double in their first year, to encourage shift to electric vehicles

Drinking and smoking

  • New flat-rate tax of £2.20 per 10ml of vaping liquid introduced from October 2026, as ministers shelve Tory plans to link the levy to nicotine content Tax on tobacco to increase by 2% above inflation, and 10% above inflation for hand-rolling tobacco
  • Tax on non-draught alcoholic drinks to increase by the higher RPI measure of inflation, but tax on draught drinks cut by 1.7%
  • Government to review thresholds for sugar tax on soft drinks, and consider extending it to “milk-based” beverages

Government spending and public services

  • Reeves announced substantial increases in public funding, with the NHS budget receiving an additional £22.6 billion in day-to-day spending. Education is set to benefit from a 19% real-terms increase in its capital budget, including £1.4 billion dedicated to rebuilding over 500 schools​ – there will also be smaller rises next year
  • Defence spending to rise by £2.9bn next year
  • Home Office budget to shrink by 3.1% this year and 3.3% next year in real terms, due to assumed savings from asylum system
  • £1.3bn extra funding next year for local councils, which will also keep all cash from Right to Buy sales from next month

Housing

  • Social housing providers to be allowed to increase rents above inflation under multi-year settlement
  • Discounts for social housing tenants buying their property under the Right to Buy scheme to be reduced
  • Stamp duty surcharge, paid on second home purchases in England and Northern Ireland, to go up from 3% to 5%
  • Point at which house buyers start paying stamp duty on a main home to drop from £250,000 to £125,000 in April, reversing a previous tax cut
  • Threshold at which first-time buyers pay the tax will also drop back, from £425,000 to £300,000 Current affordable homes budget, which runs until 2026, boosted by £500m

UK growth, inflation and debt

  • Office for Budget Responsibility (OBR) predicts the UK economy will grow by 1.1% this year, 2% next year, and 1.8% in 2026
  • Inflation predicted to average 2.5% this year, 2.6% next year, before falling to 2.3% in 2026
  • Official definition of UK government debt loosened by including a wider range of financial assets, such as future student loan repayments
  • Budget policies will increase UK borrowing by £19.6bn this year and by an average of £32.3bn over the next five years, according to the OBR
  • Budget boost to UK economy forecast to fade after two years

Other Measures

  • Other measures include £11.8bn allocated to compensate victims of the infected blood scandal, with £1.8bn set aside for wrongly prosecuted Post Office sub-postmasters
  • Government to stop receiving surplus cash from pension scheme for mineworkers
  • Extra spending in England will lead to £3.4bn more for Scotland, £1.7bn more for Wales, and £1.5bn more for Northern Ireland in devolution payments
  • One of the more controversial measures involves imposing VAT on private school fees, expected to raise £1.6 billion by 2029. This move has drawn criticism from some quarters, with opponents arguing it will disproportionately impact regions like London, where private schooling is more prevalent​.

These changes are part of broader efforts to increase tax revenues and manage the fiscal deficit, but they have raised concerns about their impact on savers, particularly those nearing retirement.

Opposition Response:

Former Prime Minister and current Conservative Party leader Rishi Sunak delivered a sharp critique in the Commons. He labelled the budget as a series of “broken promises” that he claims will disproportionately impact working people. Sunak focused on what he sees as damaging increases in taxes and cuts to various projects that he initiated during his tenure.

One of the key points of contention was the cancellation of his proposed Advanced British Standard qualification, which Reeves announced would not go ahead due to a lack of allocated funding.

Sunak also expressed concerns about the impact of the budget on the business sector and pensioners, arguing that new tax measures on employer pension contributions would discourage companies from investing adequately in their employees’ future. He described these moves as economically short-sighted and likely to create long-term problems for economic growth and workforce stability​.

 

City Reactions:

Business leaders and experts have voiced mixed reactions to the budget. Many welcome the increased spending on health and education, but there are concerns about the impact of tax hikes on economic growth and investment. The changes to employer national insurance contributions and the capital gains tax, in particular, have prompted warnings from the business community that these measures could stifle job creation.

Reeves defended the tough measures, arguing that “any Chancellor standing here today would face this reality. And any responsible Chancellor would take action.” She underscored the need to restore financial stability and rebuild public services after inheriting what she called a “£22 billion black hole” left by her predecessors​

Here’s what businesses have had to say:

 

Vishal Marria, CEO of Quantexa said:

“We understand that the government needs to raise revenue from somewhere to make the critical investments our country needs. However, the CGT increase may make investors question whether they can still get sufficient returns from investing in British businesses.

“This may have a big knock-on impact, which risks stifling innovation within the UK market.

“As a business we have never made impulsive decisions during the big and high-pressure moments like this and this budget is no exception.

“We’ll take our time to properly analyse the Chancellor’s statement and consider the right next steps for our business without making knee jerk reactions.”

 

Tom Whicher, CEO and Founder of DrDoctor welcomed the announcement of more investment in the NHS, but said other changes were needed too, saying:

“While a single Budget will not fix the NHS overnight, the strength of commitment shown by Rachel Reeves today is a refreshing example of promises being kept.

As pressure on our health service increases, finding the funds to keep up with demand is a complex and difficult task. But with tax rises making it possible for the government to earmark £3.1 billion for capital investment in the NHS and an increase of £22.6 billion for day-to-day spending on healthcare, a lot of good will be done.

Investing in the infrastructure to make two million extra appointments available is a great way to reduce the waitlist but, with stretched bank balances front of mind, there is a more efficient way. Our insights from patients who have missed hospital appointments shows that nearly a third would find it easier to attend their appointment if they could rearrange it online or move it to a more convenient time – that’s a really quick fix to shrinking the waitlist by reducing Did Not Attends (DNAs).

I welcome the approach to the NHS in this Budget – it’s bold but realistic. But I’d also like to see more evidence of us working smarter, not just harder, to deliver a modern NHS that does justice to patients and the dedicated professionals working within it.”

 

Melanie Pizzey, CEO and Founder of the Global Payroll Association, says:

“This budget is going to be, as Labour themselves have confessed, painful for many to hear. It seems that big changes are on the horizon, and we’re not just talking about the big life moment taxes that have hit the headlines, such as Capital Gains and Inheritance Tax.

“The country faces a radical overhaul of tax contributions across the board and even if the proposed tax changes don’t directly affect you, you’re likely to feel the impact somewhere along the way.

“The prime example of this is, of course, an increase in National Insurance obligations for employers. As their outgoings increase, businesses are going to look for savings elsewhere and the unfortunate reality is that employees are ones who are likely to feel the pinch.

“Whilst pay cuts aren’t out of the question, a freeze on pay increases is the least they can expect in the short to medium term and, with inflation continuing to rise, this will inevitably result in a real term pay cut down the line.”

 

Gareth Burrows, Founder of Breathe HR, comments:

“Unlike big businesses, SMEs don’t have a deep well of resources. The tax increase for employers will therefore hit smaller businesses hardest.

“At the same time, 63% of SME bosses say they will be disproportionately impacted by the costs of implementing changes outlined in the new Employment Rights Bill. The significant impact of these combined, upcoming costs could therefore put some SMEs in precarious financial positions. This puts workers at risk too, if employers are forced to downsize as a result.

“SMEs are the beating heart of the British business ecosystem. But many will struggle to survive without guidance to navigate the raft of changes outlined by the budget and Employment Rights Bill, as well as funding and grants that recognise the disproportionate impact these changes will have on SMEs. Proper support for SMEs will make the difference which they and our economy need to thrive.”

Asad Dhunna, Muslim founder & CEO of The Unmistakables, an award-winning diversity consultancy firm, said:

“The increases in national insurance is putting UK businesses off hiring and may trigger more international hiring.”

“Much of Labour’s agenda goes towards big business, but UK is made up of a lot of small businesses.”

“The growth agenda needs to be balanced with inclusion – Labour  are giving out mixed messages about productivity and hybrid working.”

 

Yalin Solmaz, ex Youtube, GenAI expert, said:

“From a purely financial standpoint, the expected increase in tax on dividends will be a blow to the creative industry where ~32% are freelancers (compared to 16% of the overall UK workforce), who tend to pay themselves via dividends.”

“Higher employer national insurance might also result in faster GenAI adoption by business (instead of hiring people) but I worry about this because most businesses are nowhere near ready to make the most of AI or know where to get proper AI training.”

 

Barry Whyte, UK’s leading AI training company, said:

“Heaping more and more cost on to employers disproportionally impacts mid to high-salary jobs. It will drive the growth industries that the UK needs – such as AI – to other countries which are scrambling over each other to offer incentives for relocation.”

“Waging war with well-intentioned initiatives such as research and development credits for tech companies will add fuel to the fire that is already raging, sending more and more tech scale-ups overseas.”

 

Simone Carasco – Founder and CEO of EvolvedMe Training & Consulting said:

“Today’s Pension Taxation Changes will not ensure equitable financial futures for all employees and these pension tax reforms may affect retirement planning, particularly for diverse employee groups.”

 

Nic Stratford, Partner and Senior Executive Reward Consultant at Mercer, said:

“While the increases in Capital Gains Tax rates were more moderate than expected, there is the risk that the higher rates make it less attractive for employees and CEOs alike to receive and hold shares in their employer.

“In nearly every FTSE company, CEOs are required to hold a multiple of their annual salary in company shares – including in most cases for some time after their employment has ended. Now, any gains on these shares held by top executives will be taxed more highly and there is no way of offsetting this loss of attractiveness.  This is a highly mobile, global, talent pool some of whom can choose top roles in any location. Making UK companies less attractive makes it harder for UK companies to recruit and retain leadership talent.  Current UK executives may also be more resistant to future investor driven requests for them to hold yet higher amounts of company shares, due to the higher rate at which gains on these shares will be taxed.

“The change also risks undermining the attractiveness of share plans as a means of encouraging employees to hold shares in the companies they work for. Instead, many employees may choose to sell their shares from share awards sooner, rather than face roughly one-quarter of future gains on retained vested share awards now being taxed. Coupled with frozen income tax bands, employees are facing a further hit to their remuneration package.”

 

David Ovens, Joint Managing Director, Archangels said:

“Today’s Budget offered the Chancellor a chance to outline a tax approach that nurtures entrepreneurship, encourages investment and innovation, and fuels long-term economic growth. Instead, we have seen a raft of measures, from raising CGT and Business Assets Disposal Relief, to raising employer National Insurance and lowering the rate threshold, all of which will undermine the country’s attractiveness as a place to start and scale a business.

“While we all must face up to fiscal realities, these tax increases fly in the face of the Government’s pro-business commitments and will only serve to dampen the UK’s entrepreneurial spirit. Given the well-documented importance of SMEs to economic growth, these changes are a major cause for concern.

“Business Assets Disposal Relief (BADR), in particular, has been a crucial incentive for entrepreneurs and management teams, encouraging risk-taking and innovation. Nearly doubling the rate, from 10% to 18% in two years’ time, will disproportionately affect those who have invested their time, energy, and resources into building businesses from the ground up – not necessarily the wealthiest CGT payers.

“As for CGT, while the rise might not be as steep as some feared, even this marginal increase will contribute to the perception of the UK as an unfavourable place to invest.

“All in all, a very disappointing Budget for business owners and to the UK’s reputation as a place to start and scale a business.”

 

Andy Mitchell, managing director at the sustainable energy revolution pioneers, 21 Degrees. said the budget was a missed opportunity to address energy efficiency in homes:

“Today’s Autumn Budget delivered by the new Labour government missed a vital opportunity to address energy efficiency in homes – a gap that is becoming increasingly hard to justify in light of the current climate crisis, as well as the proven benefits of efficient homes for health, comfort, and reduced energy consumption.

“The chancellor announced investment into the building of over one million new homes, but research by Passivhaus Trust shows that almost all new builds fall short of even the basic energy standards by over 60%, with the minimum requirements already low. Now, more than ever, there is a need to champion high-performing homes

“Bringing every home in the UK up to an EPC standard C would save the estimated energy equivalent of the output of up to four nuclear power stations. That’s why it’s time to approach retrofit projects as critical infrastructure investments.”

 

Conclusion:

Overall, Chancellor Rachel Reeves’ first budget has laid out a roadmap that she believes will balance tax increases with strategic investments in public services and infrastructure.

While some have praised the measures as necessary to restore economic stability, others remain cautious about the potential impact on businesses and households.

 

—

Photo by Jake Willett, Unsplash

Source: BBC

Health & Care

Understanding Liposuction: Expert Shares 8 Facts vs. Myths

In the UK, Liposuction is one of the most commonly performed cosmetic surgeries. According to the British Association of Aesthetic Plastic Surgeons (BAAPS) over 3000 liposuction procedures were performed, marking a 135% increase in the year 2022.

The NHS suggests that the average cost of these procedures ranges from £3000 to £8500.

Despite its popularity, there are widespread misconceptions about what liposuction can achieve.

With that in mind, one of the country’s leading experts in this area, plastic surgeon Manish Sinha has produced a new guide on the facts vs myths in this area.

Dr Sinha said: “Liposuction can be transformative, but it’s essential to approach it with realistic expectations. Success depends on factors like the surgeon’s skill, the chosen technique, and the patient’s commitment to post-op care. While most patients report high satisfaction, rare complications emphasize the need to choose a qualified professional. If you’re considering liposuction, take the time to discuss your goals with a certified cosmetic surgeon who can provide tailored advice.”

 

Here plastic surgeon Dr Sinha shares the eight main myths that exist around the procedure.

 

Myth 1: Liposuction is a Weight Loss Solution

In most cases, I have seen that Liposuction is often misunderstood as a shortcut for weight loss – but that’s not true. It’s primarily for body contouring and is most effective for patients within 30% of their ideal weight, focusing on stubborn fat deposits that resist diet and exercise.

The NHS also claims that Liposuction is not suitable for treating obesity, as large-volume removals increase surgical risks and complications. Patients should ideally have a stable weight and good skin elasticity for optimal results.

 

Myth 2: Liposuction Can Treat Cellulite and Sagging Skin

It’s a common belief that liposuction can resolve cellulite or tighten sagging skin. However, cellulite involves fibrous bands that tether the skin, and liposuction alone won’t address this.

For sagging skin, liposuction can actually worsen the appearance, particularly in patients with low skin elasticity. Procedures like body lifts or radiofrequency skin-tightening technologies are more appropriate in such cases. While some energy-assisted liposuction, such as Vaser, may improve skin texture slightly by stimulating collagen, it’s not a substitute for comprehensive skin-tightening procedures.

 

Myth 3: All Liposuction Techniques Are the Same

The techniques available for liposuction vary widely. Traditional liposuction, also called Suction-Assisted Liposuction (SAL), involves a cannula to manually break up and remove fat, often resulting in more bruising due to manual effort. Costs for SAL typically range from £2,500 to £3,500 in the UK, depending on the area treated. Although this procedure tends to be relatively less expensive, it comes with its own set of complications and requires additional steps in the aftercare.

 

Myth 4: Liposuction Results Are Instant

I strongly recommend all patients to balance expectations against reality before considering Liposuction. While some initial results are visible, full liposuction outcomes take time. Swelling and bruising can persist for several months, so patients should be prepared for gradual improvements.

Wearing compression garments during recovery helps minimize swelling and supports skin adaptation to new contours. Most patients see substantial results within three to six months, with final effects taking up to a year to fully materialize.

 

Myth 5: Liposuction is a Risk-Free Procedure

Just like any other medical procedure, Liposuction also comes with its own set of risks and complications. Having said that, it can be relatively safe when performed by qualified professionals by taking all the recommended precautions.

Complications can range from Infection, scarring, and asymmetry. Some cases could also see rare complications like pulmonary embolism which could be potentially life-threatening. The NHS advises consulting a certified plastic surgeon at a registered clinic to minimize risks. I also recommend all patients to abstain from Large-volume removals as this increases the risk of complications.

 

Myth 6: Recovery from Liposuction is Quick and Easy for Everyone

It should be understood that there is no template for the recovery process. Each patient is different, and their recovery varies based on technique and the individual’s health. While traditional methods may necessitate two weeks of rest, with activity restrictions for up to six weeks. Energy-assisted methods often allow quicker recovery, enabling patients to resume light activities within a few days.

 

Myth 7: Liposuction Permanently Eliminates Fat

This is probably one of the most popular myths around Liposuction. While liposuction removes fat cells, the remaining cells can still expand if the patient gains weight. To maintain results, patients should commit to a balanced diet and regular exercise.

 

Myth 8: Anyone Can Perform Liposuction

In the UK, though cosmetic procedures are regulated, not all practitioners are equally qualified. I highly recommend patients ensure that their surgeon is on the GMC specialist register for Plastic Surgery and has specific training in cosmetic surgery. Organisations like BAAPS promote safety by endorsing experienced, ethical professionals. Researching credentials and consulting with trusted sources ensures a safer procedure and better results.

Awards, Business News, Wales

RD Group CEO honoured with BESA President’s Award for Outstanding Achievement

Raven Delta (RD) Group CEO, Dave Kieft, has been recognised with the President’s Award for Outstanding Achievement at the BESA Awards 2024, which took place on October 17 at The Brewery, London. The award, presented by Adrian Hurley, President of the Building Engineering Services Association (BESA), is one of the industry’s highest honours, given to individuals who have made extraordinary contributions to the sector.

Kieft was honoured for his visionary leadership and pivotal role in developing the world’s first technical standard focused on the health and wellbeing of building occupants – British Standard BS40102 (Part One). This standard, created in response to pioneering legislation from the Welsh Government, has become a cornerstone in the global effort to improve indoor environmental quality (IEQ).

Kieft’s work, which began nearly a decade ago, culminated in a standard that has gained international recognition for its role in addressing the need for healthier indoor environments, especially as the Covid-19 pandemic brought IEQ into the spotlight. The standard was fast-tracked by the British Standards Institute (BSI) and is already being adopted in multiple countries.

Kieft’s commitment to the project and his leadership in bringing together technical experts and standards bodies were key to the rapid development and approval of BS40102. His work has set a new benchmark for the measurement, metering, and monitoring of indoor environments, ensuring that health and wellbeing are central to future building designs.

Although Kieft could not attend the awards ceremony due to other commitments, Steve Pridmore, of Raven Delta Group, accepted the award on his behalf. In a pre-recorded message, Kieft expressed his gratitude to the team that supported the standard’s development and outlined his vision for expanding this work into the domestic building sector.

The President’s Award for Outstanding Achievement highlights Kieft’s lasting impact on the building services industry, especially his drive to ensure the wellbeing of future generations through healthier indoor environments. His efforts continue to shape the future of the industry, and his leadership in sustainability and environmental health is widely recognised.

Adrian Hurley, President of BESA, introducing the award:

“This year’s recipient was the driving force behind the world’s first technical standard for the health and wellbeing of building occupants. Inspired by groundbreaking legislation passed by the Welsh Government aimed at safeguarding future generations, this individual set about galvanising technical experts and standards-setting bodies to turn a legislative requirement into practical measures.”

“For his vision, tenacity, and determination to improve indoor environments for the good of communities worldwide, this year’s President’s Award goes to Raven Delta Group’s CEO, Dave Kieft.”

 

Raven Delta Group CEO, Dave Kieft, has been recognised with the President’s Award for Outstanding Achievement at the BESA Awards 2024.

Dave Kieft, expressing his gratitude after receiving the award:

“I am truly honoured to receive this prestigious award from BESA, and I’m incredibly grateful for the recognition. However, this achievement is not just mine—it reflects the hard work, dedication, and expertise of a remarkable team of individuals who have worked tirelessly over the years to bring the BS40102 standard to life.”

“This award is a testament to the collaborative effort of many, including the technical experts, standards bodies, and industry partners who have contributed along the way. I’d especially like to recognise Chris Jenkins, who led the original steering group and has been instrumental throughout the process. Without his leadership and the support of BESA, this achievement would not have been possible.”

“The next step is to continue this vital work by expanding these principles into the domestic environment, ensuring that we safeguard the health and wellbeing of future generations. I am immensely proud of what we’ve accomplished so far, and I look forward to working with the team and our partners to drive even greater advancements in the years to come.”

Mid Wales

Folk legend Sam Lee to perform at Gregynog Hall

Mercury prize nominee and Songlines Award winner Sam Lee is set to perform at Gregynog Hall on November 24 as the culmination of a fabulous folk series.

Sam performed at Glastonbury in 2024 and has toured across Europe and the UK. His singular interpretations of folk songs and themes break down the barriers between traditional and contemporary music.

He is also known for his love of wilderness and nature, making him a perfect match for a historic house set in 750 acres of stunning nature reserve.

Gregynog Hall has played a leading role in the development of Wales’ classical music scene it was the home of the Davies sisters in the 1930s. Music festivals were held at Gregynog Hall, attended by famous musicians such as Sir Adrian Boult, Walford Davies and Gustav Holst.

Gwen and Margaret Davies were always passionate about the arts. Prior to the Great War, they had begun collecting paintings and other works of art, notably French Impressionists and post-Impressionists – Monet, Renoir, Cezanne, Pisarro, Sisley, Morisot – which was very daring stuff for the times.

Their adviser was a man called Hugh Blaker who was the brother of the sisters’ governess. Gwen was also a talented musician and music was very important to both sisters.

They converted the Billiard Room in their home into a Music Room which continues to host concerts including a free programme of chamber music on Saturday mornings.

Now Gregynog is looking beyond its traditional classical remit and to host contemporary interpretations of traditional music. Gregynog Hall’s Autumn 2024 Folk Series concludes on Sunday, November 24 with a performance by Sam and his band.

Lee’s most recent album ‘Songdreaming’ was a Mojo Album of the Month earlier this year and is the recipient of five-star reviews.  With a lyrical focus on the perilous state of the natural world that has informed Sam’s work since his debut, ‘Songdreaming’ represents his most expansive and fully realised album to date.

“I wanted to sing a vision of what a conversation between us and the land could be, to restore and inspire a practice of songful immersion in nature that brings with it healing, something we need now more than ever,” he said.

Gregynog Hall offers a range of accommodation which allows visitors to make a weekend of it and explore the estate’s amazing 750-acre estate.

Gregynog Hall’s woodland is part of Wales’ national forest with miles of paths to explore so pack your boots as well! Early tickets cost £22.50 including booking fee (£27.50 full price). Details are available at www.gregynog.org and you can book accommodation by calling the Hall on 01686 650224 or email enquiries@gregynog.org.

Finance News

Many will be left reeling by Budget, consumer expert warns.

The budget will leave many people reeling, a leading consumer expert has warned.

Jane Hawkes said the record-breaking tax-rises will be hard for many to absorb.

Consumer expert Jane said: “Tax rises of around £40bn is the biggest in 30 years and will leave many reeling from the list of announcements.

“The big and very welcome surprise has come with no increase on fuel duty so at least we won’t be paying more at the pumps. This has a multi fold effect as any increase would have had a much wider detrimental impact. However the devil is in the details as although no increase in fuel duty, 2025/26 VED rates will be uprated for cars, vans and motorcycles in line with RPI from April 2025.

“Consumers also won’t be paying any more at pub pumps with a cut to alcohol duty for draft drinks of 1.7%, cutting a penny off a pint.

“The decision to run with the introduction of VAT to private school fees is concerning and disappointing as is any tax on education. What the Labour party give generously with one state hand, they take sharply from the private one. However the impact this will have on the education of children who may now need to move schools mid term and the current capacity in the state sector should not be underestimated.

“Increasing the carers’ allowance earnings threshold means full time carers will quite rightly be able to earn more without being financially penalised for doing so.

“No increase to Income tax and NIC as expected but changes to employer NIC contributions will undoubtedly impact on employees as shortfalls have to be filled somewhere. It all comes full circle in the end. Also any extension to income tax and NIC thresholds (beyond what was planned to 2028) would have been pie in the sky anyway as could easily be reversed in a future budget.

Today’s budget may well have aimed to end ’short term-ism’ but as to whether it will be enough to create a new era of long term growth, that remains to be seen.”

Chancellor Rachel Reeves’ Budget statement this afternoon highlighted tax hikes for both working individuals and British businesses.

She told the Commons that the Budget will raise taxes by £40bn with an approach that she believes will achieve growth in the near future.

Reeves shared projections from the OBR, which said CPI inflation will average 2.5% this year, 2.6% in 2025, then 2.3% in 2026, 2.1% in 2027, 2.1% in 2028 and 2.0% in 2029.

Reeved also said the OBR has published a detailed assessment of Labour’s policies for the next decade.

Listing its forecasts, she announced that real GDP growth will be 1.1% in 2024, 2% in 2025, 1.8% in 2026, 1.5% in 2027, 1.5% in 2028, and 1.6% in 2029.