Adrian Haller, Managing Director of Bruderer UK, looks back at last week’s hugely anticipated budget and explains why there should be some positivity amongst a backdrop of costs pressures for SMEs.
“We manufacture high-speed presses and tend to be a good bellwether for the UK economy, as if things are good companies are investing.
The last twelve months have continued to be positive as firms, on the whole, have been exploring new opportunities and looking into new growth markets where we are especially strong.
Automotive, aerospace and electrification were all mentioned in the budget and – with hopefully new money being pumped in by the Chancellor – this will generate us additional business.
Now the BUT! The increase in NI for employers and the unexpected lowering of the threshold are two painful blows to management teams and will be exacerbated by the increase in the National Minimum Wage.
The latter will have a far-reaching impact as it will squeeze salary boundaries and see more of your skilled and technical staff wanting wage rises to reflect the additional skills they bring to your business. Whilst we’d all love to pay our staff the most we possibly can, where does this money come from when margins are tight and shrinking by the week?
Bruderer UK has long championed the need for a real focus on getting the skills that industry actually needs, and I’m hoping we’ll read more on this in the weeks to come and with further clarity on what Skills England will bring to the table.”
