Midcheshire Independent Issue 177

APRIL 2025 14 Independent BUSINESS LOOMING April cost increases could force 70 per cent of hospital- ity businesses to cut staff, new research has revealed. Trade bodies are now call- ing on the government to work with them and delay employer National Insurance Con- tributions (NICs) threshold changes so that hospitality can continue to contribute to economic growth. Chancellor Rachel Reeves announced in October’s budget that government would raise employer NICs to 15 per cent in April, while also lowering the threshold at which contributions are due to £5,000 from £9,100. In addition, the national minimum wage will rise by 6.7 per cent to £12.21 an hour from April. Businesses are warning they will be forced to make painful decisions to weather the new costs. A joint survey by leading hospitality trade associations has revealed how the sector fears it will be drastically affected by new employment costs and the reduction in rates relief come April. The report reveals that 70 per cent will reduce their employment levels, risking job losses and lost income for workers. The survey of pubs, bars, restaurants and hotels found 60 per cent looking to can- cel planned investment as a result of the increased expenses while 29 per cent will reduce trading hours. A quarter of them say they have no cash reserves left and 15 per cent believe they will have to close at least one site. The British Beer and Pub Association, the British Insti- tute of Innkeeping, Hospital- ity Ulster and UKHospitality are highlighting the strong record the sector has in deliv- ering economic growth. Hospitality was one of the top contributors to GDP growth in November and December 2024. They say a delay to the changes to the employer NICs threshold would avoid the immediate impact on jobs and investment revealed in the survey. Instead, it would allow hospitality to deliver economic growth further and faster. When asked how the gov- ernment could support the sector, businesses cited a reversal of employer NIC changes as the second biggest priority after a lower rate of VAT for hospitality. In a joint statement, the trade bodies said: “These fig- ures should serve as a clear warning that pubs, brewers and hospitality venues will be forced to make painful deci- sions to weather these new costs, which will have dam- aging impacts on businesses, jobs and communities. “At a time when hospitality has been one of the top con- tributors to economic growth, the last thing the government should be doing is piling on costs that will impact employ- ment and cut off our ability to grow. “We want to work with gov- ernment so we can continue to vitally boost the econ- omy, which is why we urge them to delay the changes to the employer NICs threshold. This would help save jobs and allow the sector to continue on its growth path. “If it doesn’t act then businesses are clear that the impact on communities, employees and supply chains will be significant. “They have warned about potential lost earnings, lost jobs, reduced trading hours and, in some cases, business failure. This would mean the loss of essential community hubs that would otherwise drive the local economy and create jobs. “Our message to govern- ment is to delay its changes to the employer NICs thresh- old and allow hospitality to continue to deliver eco- nomic growth, regenerate our high streets and support local communities.” Nearly 300 pubs closed across England and Wales in 2024 – an equivalent of six a week - according to latest figures from the British Beer and Pub Association (BBPA). STOCKPORT headquar- tered accounting and business advisory firm Hurst has unveiled plans to double in size amid rapid expansion across the practice. In the 12 months to March 31 2024 the practice increased fee income by 13.5 per cent from £7.9million to £9m, and is on track to exceed £11m in its latest financial year. Hurst is aiming to become a £20m-turnover practice in 2028, fuelled by a growing national client base, exten- sive recruitment and new service lines to support its ambitions, alongside a mul- timillion-pound investment in technology. The firm moved its head- quarters last spring to a flagship development in Stockport to accommodate its growing team, which includes an increasing num- ber of recruits from larger firms across the UK. Its relocation to 3 Stockport Exchange, where it occupies 11,000sq ft, has paved the way for the firm to expand from 120 staff to around 170 over the next few years. Hurst focuses on advising entrepreneurial owner-man- aged businesses across all sectors and its clients include Lancashire County Cricket Club. During the current finan- cial year, it has launched a private client tax service headed by partner Karen Chadwick to enhance its offering to business owners, entrepreneurs and high net worth individuals. It has also recently launched a dedicated corpo- rate tax compliance service headed by Ellen Feetum. Outlining Hurst’s ambi- tious plans, managing part- ner Tim Potter says the firm has a strong platform to build on to achieve its goals. PEOPLE looking to max- imise their state pen- sion by plugging gaps in their National Insurance record have contributed to a total of 68,673 years, worth £35 million, since April last year. HMRC’s analysis of the digital service available to fill gaps has shown that more than 37,000 online payments have been made. The average online top-up payment is £1,835 and the largest weekly State Pension increase is £113.76. HMRC and Department for Work and Pensions (DWP) are now reminding people they only have until April 5 to check their National Insur- ance record and fill any gaps from 6 April 2006 onwards. From April 6, 2025, people will only be able to make vol- untary National Insurance contributions for the previous six tax years, in line with nor- mal time limits. The ‘Check your State Pension’ forecast service on GOV.UK is the quickest and easiest way people can check what their pension will be in retirement and take action if they need to. They can also use the HMRC app to check their forecast. Angela MacDonald, HMRC’s second permanent secretary and deputy chief executive, said: “There are just weeks left to check and fill any gaps in your National Insurance record from 2006 onwards to boost your state pension entitlement. “Don’t delay - it is quick and easy to check your National Insurance record on GOV.UK and it could help your finances in retirement.” Since the launch of the enhanced digital service in April last year, more than 4.3million people have used it to check their state pension forecast. The end-to-end ser- vice means customers can also use it to check and view gaps in their National Insur- ance record, calculate the difference any payment will make to their state pension and then make one payment for however many years they need to top up. Men born after April 6,1951 or women born after April 6, 1953 are eligible to make voluntary National Insurance contributions to boost their new state pension. It is important that people look carefully at their situa- tion and their options. Many taxpayers will have sufficient National Insurance to qualify for a full state pension with- out the need to pay more. Under the new system, which was introduced in April 2016, you typically need a 35-year National Insur- ance contribution record to qualify for the full amount of state pension. PROPERTY lender Together has announced new partnerships with New Leaf and Brilliant Solutions, further expand- ing its reach to customers across the UK. The two companies are the latest to sign up to Togeth- er’s bespoke ‘Network and Club’ portal. It means they are able to submit regulated first charge mortgages, Buy-to-Let (BTL) and Consumer BTL applica- tions directly to the Chea- dle-based lender. Founded in 1994, Bril- liant Solutions is a mortgage club and specialist mortgage packager in the residential, buy to let, secured and com- mercial sectors. It operates across all forms of mortgages and all available distribu- tion channels. New Leaf is a boutique, family-owned network oper- ating since 2004. It has more than 250 advisers giving advice across all areas of the financial services sector, including residential mort- gages, equity release, per- sonal and business protection, pensions, investments and a full estate planning service. The member firms will also be able to submit cases for additional specialist products, including Together’s bridging, commercial term and second charge loans. Tanya Elmaz, director of intermediary sales at Together, said: “Brilliant Solutions and New Leaf are both respected throughout the industry, and we couldn’t be happier to announce partner- ships with them. “Since the launch of our channel, we have now brought on board 11 mortgage net- works and nine clubs, allow- ing us to reach over 23,000 advisors and 2,500 net- work firms.” Together has also appointed industry specialist Andrea Roberts as national account manager in its Networks and Clubs Team, looking after Brilliant Solutions. Pension top-up deadline looms Pubs facing last orders Together’s partnership approach Industry specialist: Andrea Roberts Andrea brings with her 30 years’ experience, having held account manager and busi- ness development manager positions for Hodge Bank and Principality Building Society. She said: “My key goal is to educate members, equipping them with the knowledge of Together’s specialist lending products and the solutions we can provide for their cli- ents, and offer guidance and support to ensure good cus- tomer outcomes”. Accountants’ plan at the double Solid foundations: Managing partner Tim Potter He said: “We have good, solid foundations fromwhich to propel our growth in a measured way. “This involves continuing to focus on providing a gen- uinely caring and friendly service and excellent value to our growing client base, ensuring they have a pleas- ant experience with us by obtaining sound commercial advice to help them achieve their goals, together with the technical abilities of our team. “At the same time, the essence of our firm is a great culture. Looking after our people really well so they are inspired and motivated to achieve success for our clients is key to our ethos. “This combination is help- ing us to win more busi- ness nationally, although our focus remains on the north west. “In the North West alone, we act for businesses with a combined turnover of £10bn as we continue to expand our client base. The region has a thriving business community and is a vibrant area of entre- preneurship and innovation. “There is plenty of scope for further expansion for Hurst both in the North West and beyond.” Tim added: “Over the past 12 months we have invested in the business on a signif- icant scale, with our new offices, key appointments, new service lines and by embedding new technologies within the firm, including AI-driven digital platforms.”