As we step into 2025, we at Glen have started our planning on a fresh sheet. Revisiting the vision, confirming our mission and have set new business-based objectives for our management team, in light of lessons learned from recent years.
Economic growth slowed in the second half of 2024 and business confidence has declined. Early indicators are pointing towards no or little growth in GDP in the last month of the year.
We read from the ONS that 80% of the UK's economic output comes from services. Professional services, life sciences, and digital and technology are among eight "high-growth sectors". In contrast, consumer-facing services such as retail, hospitality (accommodation and food services) facilities and recreation have seen little to no growth this year.
Businesses in retail, hospitality and facilities sectors have argued that Budget measures that increased employment costs (higher employer National Insurance contributions (NICs) and increases to the national living wage) disproportionately affect them as high users of part-time and lower-paid workers.
It is widely reported that concerns about rising employment costs following the Budget, (Data from the Bank of England's Decision Maker Panel Survey) found that around half of the firms polled were expecting to lower profit margins (59%), raise prices (54%), or lower employment (54%) in response to increasing employer NICs. The cost will be £720,000 to Glen.
The new Employment Rights Bill, going through Parliament, shifts the balance of power in favour of workers, with further increased costs for Employers.
We are no different from everyone else in our concerns, what is important is how we respond in a low margin, high labour business, the Newsletter will focus on our proposed actions to mitigate some of the risks.
Thank you for your business and allowing Glen to be part of your journey.
Ross Barnes, Managing Director