Tees Business LIVE : December 2024
EVENTS
PICTURES : TOM BANKS
CHALLENGES AHEAD
Tees Business LIVE : December 2024
ROCKLIFFE HALL HOTEL , HURWORTH
IN ASSOCIATION WITH PARALLOY
Discussion – the Tees Business LIVE panellists ( from left ) were Carl Sanderson ( Paralloy ), Danielle Croce ( Intasite ), Jessica Gwaringa ( Moonrise 24hr Recruitment ) and Andrew Rowe ( Azets ).
Budget prompts negative initial reaction , Tees Business LIVE hears – but ‘ time will tell ’
There ’ s been a generally negative reaction by businesses to the latest Budget , the latest Tees Business LIVE event was told .
But Andrew Rowe , Wynyard office managing partner of leading accountants Azets , which represents many Teesside businesses , said the business reaction to Tony Blair ’ s Labour government introducing the national minimum wage back in 1999 showed that firms can adapt .
A Tees Business event in association with steel specialists Paralloy , around 80 guests gathered at Rockliffe Hall for the final Tees Business LIVE of 2024 .
As well as networking , there was a chance to hear a four-strong panel of business leaders discuss the region ’ s opportunities and challenges for 2025 .
And when it came to chancellor Rachel Reeves ’ Budget , there was a mix of uncertainty and negativity .
Asked about the budget ’ s general reception and its potential impact on businesses , Andrew Rowe told the meeting the reaction had “ nearly been 100 % negative ”.
He explained : “ We , in the main , are advising SME businesses . So , if you take a typical small business on Teesside – £ 1m turnover , a £ 300,000 wages bill , 10 staff – that £ 300,000 will be £ 320,000 next year .
“ So that extra hire they might have done or the 5 % pay rise has gone from their budget , which means they ’ re going to have to get a bit more creative .
“ But on the positive side , the last time a new Labour government came in with Tony Blair , they brought in the national minimum wage and businesses had a similar reaction then .
“ They felt it would be too expensive and that they wouldn ’ t be able to afford it , but they managed and it ’ s now part of the normal working environment .
“ So while there ’ ll be some complaints and plenty of work for us , I think we just have to get a bit more creative and maybe pedal a bit faster .”
Paralloy MD Carl Sanderson felt it was “ very difficult to say at this stage ” what the impact of the Budget might be , although the minimum wage rise wouldn ’ t affect the Billingham-based firm as much as some other businesses .
He added : “ There are so many variables , but time will tell I guess .”
The reigning Tees Businesswoman of the Year , Intasite commercial director Danielle Croce , felt the increase in employers ’ NI payments could mean a “ really difficult time ” for some firms .
She said : “ I think the money businesses would have spent investing into the year ahead , we ’ re now going to have to think more strategically about how we do that . “ It seems like they haven ’ t massively
thought about smaller businesses or businesses that want to scale .
“ I ’ m hoping we aren ’ t going to see too much of a change but at the same time , is it going to affect the clients we work with in terms of the workforces they have ?”
And Jessica Gwaringa , MD of Moonrise 24hr Recruitment – the 2024-25 Tees Businesswomen Awards Business of the Year – said a lack of money in social services was already a challenge for care industry firms .
She said : “ If this Budget is going to go ahead , there will be fewer businesses coming up . Nobody will want to start any business because of that – SMEs will struggle to balance between the wages and training element , the overall costs of running a business and making sure that individuals are trained to deliver the service .
“ But we ’ ll wait until next year to see what it brings .”
Series associate sponsor for the 2024 Tees Business LIVE programme has been North East Chamber of Commerce .
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