Wbg, one of Scotland’s leading independent specialist full-service accountancy firms, has called for next month’s Scottish Government Budget to provide relief to SMEs struggling with rising operating costs in an increasingly challenging economic environment.
Chancellor Rachel Reeves’ first budget announced a rise in employer National Insurance contributions. Starting April 2025, employers will pay NI at 15% on salaries above £5,000, compared to the current rate of 13.8% on salaries above £9,100. Together with the rise in the minimum wage for over-21s from £11.44 to £12.21 from next April, these changes present significant challenges for the hospitality sector, directly impacting the bottom line.
Neil Fraser, Associate Partner in business advisory, highlighted disparities between Scotland and England and called for the Scottish Government Budget to extend similar reliefs to Scottish SMEs.
“With 40% business rates relief for the retail, hospitality, and leisure sectors being extended in England, the Scottish Government should consider passing on some form of comparable relief to businesses in Scotland,” he said.
“Rates relief for the retail, hospitality, and leisure sectors has not been available to SMEs in Scotland since mid-2022.
“Given the significant rise in operating costs businesses now face as a result of Chancellor Reeves’ budget, many SMEs in Scotland will be hoping for the inclusion of measures in the Scottish budget that will go some way to level the playing field with businesses south of the border and assist companies struggling with a particularly challenging economic environment in Scotland.
“I would urge businesses struggling during these difficult times to seek professional advice and review their business proposition to ensure they have a viable and sustainable business model.”
The Scottish Government Budget will be delivered on 4 December.
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