Labour’s new laws are driving up costs for business owners

Small businesses across the UK are facing increased financial pressure following Labour’s latest employment law changes, with rising wage bills, higher National Insurance contributions and tighter compliance requirements.

With many business owners already battling economic uncertainty, these cost increases are making it even harder to maintain staff, sustain service levels and continue growing.

“This isn’t just about higher wage bills – it’s about survival for many small businesses,” says Tara Anstee, owner of ZestHR.

“Every additional cost squeezes margins further. But rather than simply absorbing these expenses, businesses need to be strategic in how they manage their workforce and retain key talent.”

Where HR support can help

Instead of viewing rising employment costs as just another financial burden, Tara advises business owners to take a proactive approach to workforce management, including:

• Smart workforce planning– Ensuring that you have the right people in the right roles to maximise efficiency and productivity.
• Pay structure reviews Looking beyond salaries to total rewards, benefits and long-term retention strategies.
• Retention strategies Keeping hold of your best employees to avoid costly recruitment and training expenses.
• Flexible working options – Exploring alternative employment models to balance cost management with employee needs.

“There’s no easy fix, and adjusting to these changes won’t be painless,” says Tara. “But with the right strategy, businesses can navigate rising costs while keeping their teams engaged and their operations strong.”

Business owners concerned about the impact of these changes can contact Tara Anstee for expert HR support and tailored workforce planning solutions.

For more information, visit www.zesthr.co.uk or contact 0798 393 6747