Autumn Budget will affect local businesses – but there’s time to mitigate the impact.

Chancellor Rachel Reeves’ Autumn Budget was one of the most anticipated for years. Now a few weeks on, employers across Northern Ireland are getting to grips with what it means for their businesses long-term, with changes like a hike in Employer National Insurance contributions and an increase in the National Living Wage on the horizon, writes Sinead Campbell, Head of Money, Debt and Quality at Advice NI.

One thing that’s clear is that owner-managed businesses, the cornerstone of our economy, are already weighing up if they can continue to operate as they have been as increased outgoings come from April 2025.

Many business leaders have warned, not just of the possible impact on economic growth, but of the potential knock-on effect for workers. Employers are likely to delay hiring new staff, hold off on making any wage increases, and even be forced to lay some workers off.

While other parts of the UK will benefit from 40% rates relief for independent retail, hospitality and leisure businesses to offset the impact, no such change has been implemented in Northern Ireland.

However, despite the obvious challenges that lie ahead, with several months to go before the changes come into effect, there’s still time for business owners here to mitigate the potential impact.

Assess business finances

As a first step, employers should take a fresh look at their budget so they can project ahead and get a clear picture of how the changes will affect them, taking into account the pending increase in employer National Insurance contributions, as well as the rise in the National Living Wage. The sooner this happens, the better prepared organisations will be. It may also help employers to identify areas of their business where savings can be made, which could be used to mitigate these increased costs.

Get familiar with the detail

The increase in Employer National Insurance contributions will not affect every business. As part of the budget, the Chancellor also announced an increase in Employment Allowance. This means for some eligible businesses their National Insurance will actually decrease, although the National Minimum Wage increase will impact across the board. To find out if your business will benefit through Employment Allowance, or how the Budget’s other announcements will affect your organisation, you can contact Advice NI’s business debt advisers, who are on hand to help.

Further business support could be on the horizon for Northern Ireland

Among the nine priorities the Northern Ireland Executive set out in its draft Programme for Government in September was the aim to grow a globally competitive and sustainable economy. It’s unclear for now precisely what support mechanisms will be put in place for businesses when plans are approved, but we expect new measures will need to be implemented if the Executive is serious about its vision for the future of NI.  If new supports are introduced, Advice NI will be able to share expert advice for businesses on how to make the most of them.

Advice NI and the Independent Advice Network consist of 64 members and more than 300 advisers across Northern Ireland, all providing free, impartial and confidential advice.

Businesses can call 0800 915 4604 or email [email protected] to speak directly with a business debt adviser between 9am and 5pm, Monday to Friday. Self-help business materials are also available on the Advice NI website at www.adviceni.net/money-debt/business-debt.