well-being, implement fair policies, and embrace flexible working practices will likely see improved retention and productivity, which are crucial for long-term success. For family-run businesses, a cornerstone of the UK economy, changes to inheritance tax might prompt a strategic review of operations. This could be an opportunity to restructure, diversify, or transition leadership in a way that strengthens the business for future generations.
As a small business owner, a member of the Asian Business Association (ABA), and an active participant in the London Chamber of Commerce and Industry (LCCI), I am deeply committed to supporting SMEs as they navigate change. With over 25 years of experience in marketing and manage- ment consultancy, and as the founder of Arc Management Consulting Limited, which operates in both London and Paris, I have seen first-hand the tenacity of SMEs and their ability to adapt, innovate, and drive economic growth, even in the most challenging circumstances. The 2025 Labour Budget has introduced policies intended to repair public finances and deliver long-term economic growth. Measures such as increased employer National Insurance contributions, changes to business rates relief, and proposals under the Employment Rights Bill are undoubtedly raising questions within the business community. However, while these changes present challenges, they also create opportunities for businesses to rethink strategies, build resilience, and innovate for a stronger future. A recent LCCI survey of over 200 business leaders highlights the need for change. Only 23% of respondents expressed confi - dence in the Government’s ability to deliver growth over the next five years, and 78% predicted negative impacts from increased employer National Insurance contributions. However, this uncertainty also highlights a key takeaway: businesses that proactively adapt to these changes have the potential to emerge stronger and more competitive.
The Role of Innovation
The rise in employer National Insurance contributions and reduced reliefs will require businesses to be more efficient in managing costs. Adopting technology and digital tools is one way SMEs can streamline operations and enhance productivity. For example, investing in automation, data analysis, and customer management systems could reduce overheads while delivering a better customer experience. Moreover, the emphasis on innovation could lead to new opportunities. Businesses that take advantage of innovation grants, tax credits, or funding opportunities will be better positioned to remain competitive and expand into new markets. Policymakers have an opportunity to further incentivise this innovation, and through collaboration with organisations like the London Chambers of Commerce ABA, tailored solutions can be created to empower SMEs.
Harnessing the Strength of Community
Asian-owned businesses, which make up a significant portion of the UK’s SME sector, are uniquely positioned to adapt to these challenges. The entrepreneurial spirit, resilience, and deep-rooted values within the Asian business community mean there is great potential for reinvention and growth. Strong networks within the community can be leveraged to share best practices, collaborate on projects, and amplify advocacy for supportive policies.
Opportunities to Strengthen Businesses
The Employment Rights Bill, designed to bolster worker protections, may initially create operational challenges, but it also presents an opportunity to build more sustainable and employee-friendly workplaces. Businesses that prioritise staff
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THE LEGAL CORNER MAGAZINE | ISSUE 010 JAN '25 HB
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