Navigating the Autumn Budget: Key Takeaways from November’s Chamber Meeting
On the evening of November 11th, Harrogate’s Crown Hotel bustled with activity as Chamber members and guests gathered for our highly anticipated annual financial meeting.
John Garbutt putting together the perfect ingredients for a business
The event, known for its insightful analysis of the economic landscape, has become a cornerstone of the Chamber's calendar. Among the attendees were economics students from Harrogate Ladies College, who have made this meeting a regular part of their learning experience.
We were delighted to welcome back Paul Mount, Bank of England agent for Yorkshire & the Humber for the 10th year, who spoke alongside Chamber management committee member and Director of DSC Accountants, John Garbutt.
The meeting commenced with Chamber President Phill Holdsworth warmly welcoming all attendees, expressing his gratitude to Dan Siddle and all the Crown Hotel for their hospitality. He then introduced Michelle Hayes who spoke in the meeting’s charity slot.
Resurrected Bites: Fighting Food Waste and Supporting the Community
Michelle gave a passionate presentation about Resurrected Bites, a local food waste charity that intercepts food destined for landfill and redistributes it to those in need. She spoke about the charity’s pop-up community cafés, which operate on a pay-as-you-can basis, creating an inclusive environment where people from all walks of life can connect and combat loneliness. Michelle also detailed their community groceries, where individuals facing food insecurity can access a wide variety of affordable groceries while maintaining their dignity. She concluded by emphasising the charity's ongoing need for support from the business community, encouraging fundraising, food donations, and sponsorship.
Economic Outlook and Budget Implications
The President then introduced Paul Mount from the Bank of England, highlighting the importance of his insights in light of the recent budget and interest rate changes. Paul began by explaining the Bank of England's core mission: to maintain monetary and financial stability, aiming for low and stable inflation to support businesses and households. He then analysed the complex factors that contributed to the recent surge in UK inflation, including the lingering effects of the COVID-19 pandemic, global supply chain disruptions, a tight labour market, and the impact of the war in Ukraine on energy and food prices.
Paul detailed how the Bank of England uses the base rate as its primary tool to influence inflation and economic activity. By adjusting the base rate, the Bank can influence borrowing costs, stimulating or restraining demand as needed to maintain price stability. He shared the Bank's latest economic forecast, which predicts GDP growth of 1.7% over the next year and an average inflation rate of 2.7%. Paul also acknowledged the challenges posed by low productivity growth and high economic inactivity in the UK, emphasising the need for long-term solutions to address these structural issues.
Following Paul’s presentation, John Garbutt provided a detailed analysis of the budget's practical implications for businesses. Using the analogy of baking a cake, he emphasised the importance of getting the "ingredients" right in a business, with a particular focus on the "flour" – the numbers and financial aspects.
John then went on to outline several key points from Labour’s Autumn budget that will impact businesses, including:
Increased employer's National Insurance: This will increase costs for businesses, which may be passed on to consumers in the form of higher prices, potentially fuelling inflation.
Substantial rise in the minimum wage: This will also increase costs, particularly for businesses in sectors like hospitality and retail, where margins are already tight.
Changes to capital gains tax and inheritance tax: While not as severe as some anticipated, these changes will require careful consideration and planning, especially for business owners. John highlighted the potential impact on those considering selling their businesses and emphasised the importance of seeking professional advice to optimise tax strategies and ensure business continuity.
Inclusion of pensions in estates for inheritance tax purposes: This is a significant change that could affect many individuals' long-term financial planning. John urged attendees to review their pension arrangements and seek professional guidance to understand the implications.
Member News and Updates
The meeting concluded with updates and announcements from several Chamber members:
Siobhan Scully, Deputy Head at Harrogate Ladies' College, invited businesses to participate in their upcoming careers fair (Wednesday 13th November)
Georgia Garrard, Outside Lettings Manager at Harrogate Ladies' College, promoted their venue and facilities for hire.
Tara Stagman from Ake & Humphris Wine Merchants announced their Christmas Wine Fair on 23rd November, with spaces still available at the lunchtime session.
Guy Wilson from Harrogate Brigantes Rotary made a passionate appeal for support for their "Kids Aloud" project, which provides musical opportunities for primary school children.
Closing Remarks
In closing the meeting, the President thanked the speakers and reminded attendees about the next meeting on December 9th, featuring a members-only Christmas Business Safari event. He encouraged members to attend and connect with each other.
