Marius Stäcker, CEO at ToolTime, has released an early comment ahead of the new Labour government’s first Autumn Budget this week.
Marius said: “This week, Chancellor Rachel Reeves is set to unveil the new Labour government’s first Budget. While the full measures remain under wraps, there is growing speculation and concern amongst SMEs. Despite a recent uptick in business confidence, many SMEs – including those in the trade sector – are still grappling with high operational costs and affordability challenges.
“The looming Autumn Budget is unlikely to offer substantial relief in the form of tax cuts or additional financial support for businesses. Moreover, the anticipated increase in employer National Insurance contributions could exacerbate financial strains by increasing payroll expenses, thereby limiting hiring capacity and pressuring wages.
“For small and mid-sized trade businesses, which are already struggling under the weight of rising costs, these additional fiscal pressures underline the urgent need to adopt more resilient business strategies. In a recent survey, we found that 29% of small trade businesses already cite escalating supply costs as a key challenge. To survive and thrive, these businesses must focus on streamlining their operations, driving cost efficiencies, ensuring timely invoice collections, and safeguarding their profitability.
“One of the most effective ways to achieve this resilience is through the adoption of digital tools that boost productivity and operational efficiency. Investing in software solutions not only delivers time and cost savings but also fosters adaptability in the face of increasing financial pressures. Such tools can streamline administrative tasks, from scheduling and invoicing to job tracking, freeing up valuable time for business owners to focus on growth.
“Moreover, software can help fill in the gaps left by worker shortages; with cloud-based interconnectivity, fewer people are needed on-site, and administrative processes can be managed with a smaller team due to increased efficiency. These solutions allow businesses to operate with a leaner workforce without sacrificing quality or speed, helping them stay competitive even amid labour market challenges. Additionally, these platforms offer enhanced financial visibility and control, helping to manage cash flow more effectively and maintain a steady revenue stream.”