07-05-2025
Carlisle-based accountancy firm issues warning to businesses
A Cumbrian accountancy firm has warned businesses across the county to prepare for a uncertain year.
April marked the first payroll where employers faced significant increases in staff costs due to hikes in National Insurance contributions and a rise in National Minimum Wage rates.
According to Carlisle-based Saint & Co Chartered Accountants, these increases, combined with fears of further tax rises in Chancellor Rachel Reeves' Autumn Budget, the Government's extra £15bn borrowing, and the threat of 'Trump tariffs', have created a difficult period for businesses.
Lindsay Farrer, a managing partner at the firm, said: "There is a lot of uncertainty facing businesses, and they can expect a bumpy year.
"The rises in staff costs alone are having huge impacts on local businesses, and we know of many who are having to cut the hours of their staff or abort recruitment plans just to make sure they can pay their existing staff.
"But it's not all doom and gloom and businesses can navigate this tricky period by reviewing all aspects of their enterprise and understanding what is – and crucially what isn't – possible in the current climate."
Ms Farrer has offered practical advice to businesses on how to overcome these economic challenges.
This includes calculating increased staff costs and evaluating the impact of higher staff wages and National Insurance contributions from April 2025 onwards.
She also suggests businesses analyse their current pricing model to help understand if it can continue to operate charging the same price.
Re-evaluating growth plans and checking if they are still sustainable, is another piece of advice offered by Ms Farrer.
She also suggests updating profit and loss forecasts to implement changes to staff costs to get a better picture of business performance for current and future financial years.
On US tariffs, Ms Farrer recommends securing deals ahead of any impending tariff increases, and securing fixed prices on all recurring deals to avoid future price rises.
Ms Farrer said: "We all know that the next 12 months will be tricky, and perhaps even longer term, so the responsible thing for businesses to do is plan as best as they can.
"Taking steps to analyse business practices can help mitigate any potential damage, and make sure they can adapt their model to weather the economic storm."
Saint & Co, which has nine offices across Cumbria and Dumfries and Galloway, employs more than 120 members of staff.
The accountant's warning comes as businesses across the county are already feeling the pinch from increased staff costs and the threat of further tax rises.
According to the firm, many have had to cut staff hours or abandon recruitment plans to ensure they can pay their existing staff.
However, Ms Farrer believes that by taking a proactive approach and reviewing all aspects of their operations, businesses can navigate this challenging period.
She said: "Taking steps to analyse business practices can help mitigate any potential damage, and make sure they can adapt their model to weather the economic storm."
