UK budget Hammers Small Businesses. How To Survive Rachel's Tax Raid !

Summary

In this video, the speaker critiques recent budget changes that disproportionately impact small businesses, highlighting significant tax increases and new regulations. They emphasize the government's lack of understanding of business needs and discuss strategies for small businesses to adapt, such as outsourcing tasks and leveraging AI technologies. The speaker shares an anecdote about utilizing remote workers in the Philippines for property management tasks. They also address the importance of networking within the property investment community and encourage viewers to stay informed and proactive in navigating the evolving economic landscape.

Takeaways

• 💼 The recent budget by Rachel Reeves disproportionately harms small businesses compared to larger enterprises.
• 📉 A significant tax increase of £25 billion targeted at businesses is a key feature of the budget.
• 🔍 The threshold for employer National Insurance contributions has drastically decreased from £99,000 to £5,000, burdening small businesses.
• 📈 The increase in national living wage to £12,221 could lead to more small business employees falling into higher tax brackets without increased take-home pay.
• ⚖️ The upcoming workers rights bill may impose additional hurdles for small businesses in hiring and managing staff.
• 🌍 Outsourcing tasks to countries with lower costs is becoming a strategic necessity for small businesses facing increased domestic costs.
• 🤖 AI technologies and tools, such as custom GPTs, are being utilized by businesses to streamline operations and improve efficiency.
• 🏢 The speaker shares an example of their property management team utilizing remote workers for efficiency.
• 👥 Networking is emphasized as crucial for success in the property investment sector, highlighted by the Baker Street Property Meet.
• 💡 Small businesses must innovate and adapt to survive in a challenging regulatory and economic environment.

Q & A

What impact has Rachel Reeves' first budget had on small businesses?

The budget has disproportionately affected small businesses compared to larger ones, increasing financial burdens such as employer National Insurance contributions.

What specific change to National Insurance contributions is highlighted in the video?

The threshold for National Insurance contributions has been reduced from £99,000 to £5,000, making it more challenging for small businesses to hire their first employees.

How does the increase in the national living wage affect small businesses?

The national living wage has been raised to £12.21, which is significantly above inflation, potentially leading to higher overall labor costs for small businesses.

What does the speaker suggest about the government's understanding of business needs?

The speaker criticizes the government for lacking practical business experience, as only a few labor MPs have actually run businesses.

What outsourcing strategy does the speaker recommend for small businesses?

The speaker advises small businesses to consider outsourcing tasks to reduce costs and avoid the challenges imposed by the budget, particularly if on-site staff are not necessary.

How is technology, particularly AI, mentioned as a tool for small businesses?

The video discusses the use of AI, such as custom GPTs, to help small businesses automate operations and improve efficiency, making it easier to manage tasks remotely.

What example does the speaker provide to illustrate the outsourcing trend?

The speaker shares a story of a property administrator in the Philippines coordinating a cleaning job for a London flat, demonstrating how businesses can operate globally.

What concerns does the speaker raise regarding upcoming legislation?

The speaker expresses worry about a forthcoming workers' rights bill that could create additional barriers to hiring in the UK.

What does the speaker imply about the future of small businesses in the UK?

The speaker warns that continued government regulation could lead to more businesses seeking work outside the UK, exacerbating challenges for local employment.

What networking opportunities does the speaker promote for property investors?

The speaker encourages attendance at the Baker Street Property Meet, which aims to connect property investors and provide insights into navigating the changing market.