With an unstable geopolitical environment and troublesome economy, the recent General Election announcement by Rishi Sunak, set for 04th July 2024, poses potentially more uncertainty for SME’s and their employees depending on which party or coalition gains power.
Here are some of the questions that SME’s might be asking themselves as we embrace ourselves for the first General Election in 5 years:
How will a General Election change Economic Policies and Taxation?
· Tax Rates: Changes in corporate tax rates or small business taxes can affect the financial health of small businesses, which in turn impacts job security and wages for employees.
· Incentives and Grants: New or continued incentives and grants for small businesses could mean more resources for growth and potential wage increases or new job opportunities.
What impact will a General Election have on employment Laws and Regulations?
· Minimum Wage: Any adjustments to the minimum wage can directly affect the earnings of employees in small businesses, particularly those in lower paid positions. However, it could also lead to higher operating costs for these businesses, potentially impacting hiring, and hours.
· Employment Benefits: Policies mandating employee benefits, such as health insurance, paid leave, and pensions, can improve the quality of employment for small business employees but might also affect the financial strain on small businesses.
How do Government Policies affect Healthcare and Private Medical Cover?
· NHS & Private Healthcare Policies: Changes to healthcare funding and policies can affect the overall health and productivity of employees. Policies supporting the NHS could reduce the burden on employees needing healthcare, while changes favouring private healthcare might shift costs to employers and employees.
What changes would a new Government make to Apprenticeships and Workforce Education?
· Training and Skills Programs: Government investment in training and skills development programs can enhance the capabilities of the workforce, making employees more valuable to small businesses and improving their career prospects.
· Apprenticeship Schemes: Expanding apprenticeship programs could provide more opportunities for young people to gain valuable work experience and skills, benefiting small businesses with a more skilled labour force.
Would a new Government improve Economic Stability and Growth?
· Economic Policies: Broad economic policies that promote stability and growth benefit small businesses, leading to better job security and potential wage increases for employees.
· Inflation Control: Policies aimed at controlling inflation are crucial, as high inflation can erode real wages and increase business costs, affecting both employment and wage levels in small businesses.
How would a new Government change the Regulatory Environment for SME’s?
· Business Regulations: Changes in regulations can either alleviate or increase the administrative and financial burden on small businesses. Easing regulations might help small businesses grow, while more stringent regulations could add costs and complexities, affecting hiring and wages.
· Brexit-related Regulations: Any adjustments in trade and business regulations due to Brexit can have significant impacts, especially for small businesses involved in import/export activities.
How will a new Government improve Trade and International Relations post-election?
· Trade Agreements: New or revised trade agreements could open or restrict markets for small businesses, influencing their growth prospects and, consequently, employment and wage conditions for their employees.
· Tariffs and Trade Barriers: Changes in tariffs and trade barriers can affect the costs of goods and services, impacting small businesses' profitability and their ability to maintain or expand their workforce.
Government changes to Social Policy and the impact on SME’s?
· Work-Life Balance: Policies promoting flexible working hours, remote work, and better work-life balance can enhance job satisfaction and employee retention in small businesses.
· Diversity and Inclusion: Initiatives aimed at improving workplace diversity and inclusion can lead to a more equitable and supportive working environment for all employees.
Governmental change and investment in Technological Advancement and Research and Development?
· Support for Innovation: Policies encouraging research and development and technological innovation and adoption can help small businesses become more competitive, potentially leading to job creation and improved working conditions.
· Digital Infrastructure: Investments in digital infrastructure, like high-speed internet, can benefit small businesses by enhancing productivity and enabling remote work, which can improve job satisfaction for employees.
How would a new Government address Regional Inequalities and Development?
· Levelling Up: Policies aimed at reducing regional inequalities can benefit small businesses outside of London and the Southeast, potentially leading to more job opportunities and better wages for employees in less developed areas.
Overall, the UK General Election 2024 will shape the economic, regulatory, and social landscape in which small businesses operate, thereby affecting job security, wages, benefits, and overall working conditions for their employees.
With decades of experience helping multinational companies and small businesses alike Rico HR can help your business with all your personnel matters no matter what political changes take place. Feel free to contact us using the form below to arrange an informal chat about the challenges your business might be facing.
Comments