According to a report by the British Chambers of Commerce, the national living wage, auto enrolment and the apprenticeship levy have all contributed to inflated costs for four out of five businesses.
The biggest costs came from auto enrolment, with 75 per cent of SMEs reporting an increase in costs, and 25 per cent reporting a ‘significant’ increase.
Almost half of businesses have been impacted by rising costs from the national living wage, with 38 per cent saying they will compensate by increasing costs, and 25 per cent saying they will adjust pay growth.
Jane Gratton, Head of Business Environment and Skills at the British Chambers of Commerce comments: “At a time when employers across the country are facing acute skills shortages, it is vital that they have the resources and flexibility to invest in their workforce and the future needs of the business.
“Employment is just one element of the high upfront cost of doing business in the UK.
“It is the cumulative impact of all of these changes, and the pace at which they are being introduced, that causes the greatest concern and poses the biggest risk.”
In order to respond quickly to the changing market conditions, SMEs must ensure they have the right structures in place. Our business experts at Beavis Morgan are able to guide you on your strategy and assist in making those all-important business decisions that will have the greatest impact on future success.