The Autumn Budget 2024 & The Impact On Businesses

26th November 2024

On 30th October, the Chancellor of the Exchequer presented her Autumn Budget 2024.

The changes – taking place in April 2025 – will have an impact on the cost base for many businesses, so our productivity experts have released a podcast episode to discuss the new challenges being faced by different sectors and the strategies that can be adopted to help navigate this new terrain.

In the latest episode, Simon and Sue explore the multifaceted challenges and opportunities presented by the current economic shifts. 

As industries like retail, hospitality and care brace for the impact of increased minimum wage, the removal of Covid-era business rate relief, and increased employer national insurance contributions, the need for strategic adaptation has never been more critical.

In their discussion, Simon and Sue begin by unpacking the Budget’s ramifications on business productivity, highlighting how sectors with large headcounts and low-wage employees are the most affected. For businesses like major retailers and those in hospitality, the forecast of billions in additional costs necessitates a re-evaluation of operational strategies, such as salary sacrifice schemes which offer tax benefits to both employees and employers. By engaging in proactive planning, businesses can better manage the financial hurdles posed by these budgetary changes.

Balancing customer service with operational efficiency is also crucial. Simon and Sue examine the importance of determining which business functions require direct customer interaction and which can be optimised through automation. Leadership plays a pivotal role here, as clear direction is essential to ensure that leaders add value without becoming high-cost task-doers. Through workload labour modelling and creative workforce deployment, organisations can streamline service delivery and maintain high standards, even in financially challenging times.

The intricacies of supply chain management also take centre stage. Simon and Sue explore the trade-offs involved in various stages, such as warehouse picking and its subsequent impact on store teams. By implementing practices like goodwill receiving, businesses can mitigate inconsistencies and reduce refund claims, ultimately improving overall efficiency. We encourage adopting a holistic approach, considering upstream influences to optimise supply chain dynamics.

With Christmas just around the corner, the potential for positive shifts in consumer spending presents a glimmer of hope. By leveraging these insights and resources, businesses can engage in strategic planning to capitalise on this opportunity. 

To enhance your understanding and strategic capabilities, we recommend:

• Exploring our downloadable whitepapers
• Booking your spot at Productivity Forum 2025

Find out more about how you can equip your business with the knowledge and tools needed to thrive amidst economic uncertainty by listening to the full episode here.

By focusing on strategic adaptation, operational efficiency, and supply chain optimisation, businesses can navigate the current economic landscape with resilience and foresight.

Looking for specific business productivity advice that’s tailored to your organisation? Contact our experts today.