Keir Starmer Issues Warning For October Budget 2024
Over the past few weeks, we’ve slowly started to see what life under the new government might look like. From rumoured changes to the working week and flexible working requirements to already confirmed cuts to Winter Fuel Payments, Keir Starmer’s government has been steadily putting its own stamp on things ahead of the upcoming October Budget 2024. The general feeling across the country is that this budget will have huge repercussions for both businesses and individuals working and operating in the UK.
In fact, the Prime Minister himself has now echoed this public sentiment and has warned that the October Budget will require a general acceptance of “short-term pain for long-term good”. Starmer issued this warning outside Downing Street on the 26th of August, also reinforcing that the new government had inherited an “economic black hole” which would need to be addressed by new economic policies.
While we cannot know exactly how the government will address these problems until the Budget is officially announced, it is expected that some level of tax rises and changes to tax reliefs will be made which will have direct repercussions on many businesses. Staying informed will be key to navigating the next few months if you are a business owner.
How To Prepare Your Business For The Autumn Budget
The warning issued by the Prime Minister has led to a feeling of uncertainty and apprehension amongst businesses in the UK. Even those in a favourable financial position are understandably concerned about whether they will be impacted by possible tax rises, while those struggling to repay their debts fear that changes to fiscal policy will be the final nail in the coffin in a challenging, post-COVID economy.
If you are also apprehensive about how the October Budget may affect your business, there are a number of things you can do to prepare.
Stay Calm
Though it’s often easier said than done, the most important thing any business owner can do as the October Budget approaches is to stay calm. Panicking about possible policy changes is completely counterproductive and may lead to unnecessary decisions being made which will have a significant impact on business performance in the long-term. For example, fear of increased business costs might lead you to sell off assets or restructure areas of the business when there is actually no need to. Instead, channel your apprehension into a willingness to keep informed and up-to-date with the news so that you do have a wider understanding of budgetary changes when they are announced in October.
Get Your Finances In Check
You can also prepare for the October Budget by ensuring that you have a complete understanding of the current financial position of your business. Make some time to conduct a thorough financial analysis between now and October, including an analysis of your cash flow as well as an overall assessment of business costs and possible areas where you could make savings. Having this understanding ahead of the Budget announcement will mean you can assess the possible impact of changes with the most up-to-date information, rather than jumping to incorrect or ill-informed conclusions.
Consider Action Now
If your business is reliant on or expecting to receive certain tax reliefs or government benefits, it is worth considering whether you want to take steps to access these now rather than waiting until after the October Budget. For example, it is being speculated that the Chancellor will announce cuts to Business Asset Disposal Relief which can currently reduce Capital Gains Tax to just 10% when assets are extracted from a business. Should this tax relief be axed, business owners looking towards Members Voluntary Liquidation (MVL) to close their solvent business in a tax-efficient manner may no longer find the process as financially favourable. This could have significant implications for future plans, so it may be advantageous to accelerate your consideration of an MVL if it is of interest and relevance to your business.
At My Liquidation, our expert insolvency practitioners are equipped and ready to help you understand how the October Budget may affect your business and extract your wealth via an MVL if suitable. Get in touch today to discuss your concerns and current position, and we’ll do our best to help.
