BDO Northern Ireland’s Post

Most businesses in Northern Ireland (78%) are trading well or reasonably, according to the findings of the latest Quarterly Economic Survey published today by NI Chamber and BDO Northern Ireland. In Q3 24: ➡️The share of those trading ‘well’ fell to its lowest point in four years (27%) ➡️The percentage just covering costs or struggling (22%) was up from last quarter ➡️4 in 5 members were under pressure to raise prices because of rising labour costs ➡️44% of members expressed concern about taxation ➡️78% of businesses are struggling with the persistent problem of labour shortages ➡️Fewer members noted inflation as a key concern https://lnkd.in/eVi76CzJ

📊 How will the new Labour government impact the finances of the UK’s 5.5 million small businesses? A change in government often marks a crucial period for small businesses as new policies come into effect. Here’s what we can expect from the Labour government: 1️⃣ 𝗧𝗮𝗰𝗸𝗹𝗶𝗻𝗴 𝗹𝗮𝘁𝗲 𝗶𝗻𝘃𝗼𝗶𝗰𝗲 𝗽𝗮𝘆𝗺𝗲𝗻𝘁𝘀: Small businesses typically have £20 billion in outstanding invoices at any given time. Labour plans to introduce new legislation requiring the audit committees of large businesses to report on their payment practices in their annual reports. 2️⃣ 𝗥𝗲𝗳𝗼𝗿𝗺𝗶𝗻𝗴 𝗯𝘂𝘀𝗶𝗻𝗲𝘀𝘀 𝗿𝗮𝘁𝗲𝘀: Currently, brick-and-mortar businesses pay disproportionately more in local taxes than their online competitors. Labour aims to replace the current business rates system with a new one that levels the playing field between high street and online businesses. 3️⃣ 𝗕𝗼𝗼𝘀𝘁𝗶𝗻𝗴 𝘀𝗺𝗮𝗹𝗹 𝗯𝘂𝘀𝗶𝗻𝗲𝘀𝘀 𝗲𝘅𝗽𝗼𝗿𝘁𝘀: Labour intends to remove barriers to exporting by providing clear information and support. They plan to publish a trade strategy aligned with their industrial strategy and foreign policy objectives and to launch a Small Business Export Taskforce. 4️⃣ 𝗠𝗮𝗸𝗶𝗻𝗴 𝘁𝗵𝗲 𝗨𝗞 𝘁𝗵𝗲 𝗯𝗲𝘀𝘁 𝗽𝗹𝗮𝗰𝗲 𝘁𝗼 𝘀𝘁𝗮𝗿𝘁 𝗮𝗻𝗱 𝘀𝗰𝗮𝗹𝗲 𝗮 𝗯𝘂𝘀𝗶𝗻𝗲𝘀𝘀: Labour plans to unlock financing for businesses looking to grow. They would reform the British Business Bank to better support SMEs and regional growth. Universities would be given more options for founder-track agreements to encourage spinouts. In summary, The Labour government's proposed policies have the potential to bring significant positive changes for small businesses across the UK. By addressing critical issues such as late payments, unfair tax burdens, and barriers to exporting, Labour aims to create a more equitable and supportive environment for SMEs. #SmallBusiness #Innovation #FinancialManagement #UK #Wyzr

The wine trade are in for 5 years of "Hard Labour". Yesterday's budget is going to hit the drinks and hospitality sector/ SMEs particularly hard: - We have just seen the biggest tax rise (£40bn) in the UK since 1982. Most of this is at the expense of business. - Duty will rise 3.65% but higher for wines with ABVs above 12.5%. Wines with an ABV of 14.5% will see a duty rise of 20%. - The easement on wines between 11 and 14.5% (the vast majority of wine) will go on 1st Feb, piling more bureaucracy on wine businesses - Business rates are going to rise and this will hit small businesses and hospitality the hardest - Business NI will rise 1.2% and thresholds will be lowered substantially - Living Wage will rise substantially above inflation at 6.7% - Fuel duty will go up in 2026 - CGT is going up, which will hit entrepreneurs hardest And the irony is that the OBR forecasts that this will not increase growth over the course of the Parliament. (I suspect that is optimistic, it feels anti growth and inflationary to me - which will likely increase the cost of money).

Northern Ireland's private sector experienced significant growth in June, with order books expanding at the fastest rate since February 2022, according to a survey by Ulster Bank. This surge in new orders led to a marked rise in business activity across the region. Despite the strong growth, job creation remained modest due to difficulties in sourcing new staff. Ulster Bank's chief economist, Richard Ramsey, highlighted that Northern Ireland's private sector is now in a much better condition compared to January. Manufacturing emerged as a key driver, with output and orders growing at their fastest rate in over two years. However, recruitment challenges are impacting manufacturers' capacity to meet the increasing demand. As the private sector looks ahead, it anticipates key announcements from the incoming government, including an expected emergency budget. Full Article - https://buff.ly/3LhuyKL #BusinessGrowth #NorthernIreland #Manufacturing #EconomicSurvey #UlsterBank

Growth in exports seems to be persisting.... In the last 12 months, 21% of trading businesses with 10 or more employees reported they had exported goods, services, or both; of those, 61% reported they had either exported the same amount, or that their exporting had increased in March 2024 compared with the same month last year; while less than 25% had exported less https://lnkd.in/emHr7KMJ

📢 Why doesn’t the UK government do more to support British-made products? 🤔 When you think about it, there’s very little encouragement from the government to buy products that support British jobs and industries. Unlike some countries that have strong “buy local” campaigns, tax incentives, or clear policies to promote homegrown businesses, the UK seems to rely on market forces to do the job. Sure, there’s the occasional “Made in Britain” label or industry-led campaign, but where’s the real, unified effort to boost local businesses and create jobs? Why aren’t we being reminded more to choose British products, especially in a time where local economies need all the help they can get? It’s time to ask the question—why doesn’t our government prioritise British products and make it easier for us to support our own economy? #SupportBritishJobs #BuyBritish #UKEconomy

The British ISA announced in last week’s budget by the Chancellor poses as many questions as it answers, something which certainly rang true with our Wise Society Members – only 7% of whom said that they would consider allocating funds towards it (n=120).   While ‘helping’ the UK economy was attractive to the respondents, others were sceptical of the impact it would have. Many were well aware that only the wealthiest would be able to capitalise on this extra £5,000, as so few savers use the full £20,000 allowance as it stands. One in five respondents stipulated that they would only want companies that are employing UK workers to be included in the new ISA.   How the Government aim to crack this nut, as ever, will be in the detail. But for now, it seems this initiative to stimulate the UK stock market is not enough to galvanise homegrown retail investors. #BritishISA

Ireland - EY Economic Eye: Domestic Economy In Good Health, Low Inflation, Record Employment and Favourable Growth Outlook 🇮🇪 Right now, the ‘vibes’ the Irish economy are giving are pretty good. Consumers are spending, businesses are hiring, exports are rebounding, and tax receipts are buoyant 🌍 While GDP is exhibiting some weakness, a host of other metrics indicate that the economy is doing well...☘️ https://lnkd.in/dHKMaUK8 #ireland #economicforecast #economicgrowth #export #irishsmes #irisheconomy #investments #economy

I agree with Mayor Wayne Brown that NZ government departments should all pay rates.  They should pay rates in every city in NZ that they operate.  Furthermore, property investors that invest in rental properties should pay full commercial rates since they are a business.  And what should Auckland Council do with this extra rates money? It should lower rates bills for local Auckland businesses, particularly small businesses who have carried the burden for government departments and property investors for far too long.  Time to make NZ business friendly!  Simon Bridges Auckland Business Chamber https://lnkd.in/d5RSRhxc.