Wbg, one of Scotland’s leading independent specialist full-service accountancy firms, has called for next month’s Scottish Government’s Budget to provide relief to SMEs struggling to cope with rising operating costs in an increasingly challenging economic environment.

Chancellor Rachel Reeves’ first budget announced a rise in employer National Insurance contributions. Under the new system, starting April 2025, employers will pay NI at 15% on salaries above £5,000, whereas currently, the rate is 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 announcements present a problem for the hospitality sector by increasing operational costs significantly and will impact directly on the bottom line.

Neil Fraser, Associate Partner at Wbg, said that there is not a level playing field between England and Scotland and has called for the Scottish Government’s Budget to make available to Scottish SMEs some of the reliefs available to their counterparts south of the border.

“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’s Budget will be delivered on 4 December.

ENDS

For further information please contact Neil Fraser on 0131 221 1221.

Issued on behalf of Wbg by Liquorice Media tel 0141 332 4935 www.liquorice-media.com

Date: 25 Nov24