The recently announced UK budget brings with it a mix of challenges for businesses – especially small businesses – and technology forms a significant part as both challenges and opportunities. Here’s a low-down of how the budget might impact SMBs, from a technology stand point.
Challenges for small businesses
Increased National Insurance contributions
The increased National Insurance contributions for employers means higher payroll costs, making additional hires less likely, or even impossible. These increased costs will need consideration, so SMBs continue to retain talent and invest in growth.
While it may seem that the answer is to reduce tech investments, it’s not the only option. Co-managed IT support is more affordable in comparison to additional IT staff, and investments in AI and automation can free up time in busy departments, so the business doesn’t have to invest in additional full-time staff. Let a managed IT support provider support your in-house team and take away a lot of the burden.
Talent retention and development pressures
With the rising costs of hiring staff, small businesses will struggle to retain skilled workers and remain competitive. SMBs need access to tech experts without the long-term staffing commitments.
Our IT consultancy services act as an on-demand, high-skill resource for small businesses. Digital transformation sessions, AI workshops, and managed IT services keep your business ahead of the game, without long-term employee commitments.
Opportunities for small businesses
R&D Tax Relief and Innovation Funding
Increasing R&D spending on tech-related projects will take advantage of R&D tax credits that provide significant financial relief. Automation, AI, and data-driven solutions qualify for these tax incentives and can dramatically enhance productivity.
Incentives for digital adoption
The government is also supporting digital adoption within small businesses through grants and subsidies. This is to encourage the use of essential digital tools such as cloud computing, project management software, and CRM platforms. Now is a great time to upgrade to modern tools and explore digital solutions, as your business may be eligible for funding.
Cybersecurity support
Cybersecurity is a top concern for the government, so the budget has allocated funded for cybersecurity initiatives for small businesses. If you’re a small business, explore potential grants for cybersecurity solutions, including firewalls, antivirus, and staff training. Get robust solutions without stretching your tech budget.
Upskilling and reskilling initiatives
Again, the government has allocated funds for digital/technology training. Small businesses can equip employees with critical tech skills and reduce the likelihood of successful cyberattacks.
These funding opportunities and incentives are there to support you, if you have a specific project in mind that can transform your business. Of course, they’re not there to support every IT project in every company, only projects that meet the very particular requirements. We can put you in touch with experts in this specific field, who can help you see what’s possible regarding funding.
There are opportunities out there for businesses looking to invest in their technology, and there are services available that can mitigate the rising National Insurance costs by increasing operational efficiency.
Transform the way your business works by putting AI at the heart of your business approach.
Sign up to our AI workshops that help you unlock the power of AI.
