> Source: https://www.tudorrooftiles.co.uk/journal/autumn-budget-pain-small-medium-businesses/ 1 November 2024 # Autumn budget pain for small to medium businesses by Paul John Lythgoe ## 2024 Autumn Budget October 30th 2024 budget was a momentous occasion as it was the first ever to be delivered by a female chancellor, and the first in 14 years by a labour party chancellor. Considering that the labour party defines itself as a party of growth and employment, it is without doubt that Rachel Reeves budget is expected to be extremely damaging to the UK manufacturing industry. The reasons for this gloomy outlook are: ## Wages An increase in the national Minimum Wage of 6.7% for employees aged over 21 years and 16.3% for ages 18 to 21 years (the largest such increase on record), along with apprenticeship levy and other policies over recent years, risk damaging manufacturers’ investment in their workforce. Although these rises apply to the minimum wage, it is natural that other employees will expect similar wage increases to maintain differentials. These costs cumulatively send employers’ costs to new heights. ## National Insurance National Insurance contributions paid by employers will rise from 13.8% to 15%. This does not at first glance appear to be a large increase, but In addition, the start point (the threshold) at which businesses pay National Insurance on their employees earnings will be lowered from £9,100 to £5,000. This calculates out at an extra £806 that employers pay to the Governmentfor each employee on minimum wage, more for those on higher wage. ## Investment in manufacturing The chancellor has done nothing to help with the cost of energy and standing charges which are increasing once again. Where investment is being made in manufacturing sectors, these are only in electric vehicles, aerospace, life sciences and clean energy. These ‘strategic’ sectors (many owned by overseas investors) will benefit from £4.5 Billion funding. English owned medium sized manufacturers such as Tudor Roof Tiles (50 employees) will get nothing. The Government’s Industrial Strategy commits to continued support for ‘Made Smarter’ which helps smaller manufacturing businesses boost productivity by introducing digital technologies. With handmade products and people skills, this digital improvement can only be made by removing the people and replacing them with machine made technology. This is not an option for Tudor Roof Tiles! ## CBI view The Confederation of British Industry (CBI) has reacted to the budget by stating that ‘this is a tough budget for businesses’. They also say that employer cost base increases will increase the burden on business, limiting ability to invest. like many similar sized employers will look at ways to mitigate these costs and their affect on customers and employees alike. We believe that handmade roof tiles are essential to British heritage buildings and we are proud to be a part of this conservation. We also have proudly shown that our tiles can be used with great visual impact on modern buildings, and we look forward to many future projects. [Back to the journal](https://www.tudorrooftiles.co.uk/journal/) ## More from the journal - [4 May 2025A Legacy in Every TileAt Tudor Roof Tiles, the soul of our handmade products lies not only in the clay and kilns but in the hands and eyes…](https://www.tudorrooftiles.co.uk/journal/legacy-every-tile/) - [30 April 2025New for 2025 - English Oak Blend & English Dark Oak Blend —Made in England using traditional techniques and Etruria Marl clay, this collection was specifically developed to meet…](https://www.tudorrooftiles.co.uk/journal/new-2025-english-oak-blend-english/) - [31 January 2025Jo Mills takes up Specifications & Business Development role atWhen it comes to handmade clay roof tiles, few people have the knowledge, experience, and passion that Jo brings to…](https://www.tudorrooftiles.co.uk/journal/jo-mills-takes-specifications-business-development/)