Business owners braced for tough decisions

North East business owners are bracing themselves for difficult decisions, including potential staff reductions and relocating overseas, ahead of the Chancellor’s Autumn Budget. 

Research commissioned by professional services firm S&W highlights growing concern over tax increases and employment costs among the region’s larger companies.

The Business Owners Sentiment Survey (BOSS) report, conducted by Censuswide and surveying 500 UK business owners with turnovers of £5 million or more, shows that North East firms are considering major strategic moves if tax changes are introduced.

Relocation and tax concerns:

• 42 per cent of respondents surveyed would consider moving their business abroad if taxes rise
• 42 per cent would consider leaving the UK if a wealth tax is introduced
• 30 per cent would relocate overseas if Capital Gains Tax (CGT) increases
• 28 per cent say higher CGT could deter them from starting a new business
• 28 per cent are worried about the Budget’s impact on operations

Staffing plans under pressure:

• 34 per cent of respondents surveyed anticipate a hiring freeze over the next 12 months
• 44 per cent expect to make redundancies
• 50 per cent are planning or have already made staff cuts due to the October 2024 employer NIC rise

Despite these challenges, many North East business leaders are pursuing international growth.

Around 30 per cent plan to expand into the US within five years, while 28 per cent are looking at Europe as a target market.

The findings underline the delicate balance regional companies face in managing immediate financial pressures while seeking opportunities for long-term growth. 

Donna Bulmer, regional managing partner at S&W, said: “Business owners in the North East are facing mounting pressures – from rising employment costs to the threat of increased taxation – and this survey suggests many are being forced to consider difficult decisions, including staff cuts and relocating overseas. 

“The message is clear: the Autumn Budget must deliver meaningful change to ease the burden and unlock the region’s full potential.” 

Find out more about S&W and the services it offers in our interview with Donna, in our sister publication, N, here.

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