With the UK economy losing the growth momentum, the outlook remains starkly difficult for UK businesses and households as the long drawn economic situation continues. That Budget announcement is now less than two weeks away. As the date draws nearer, hopes for a substantial tax rise are fading, leaving small and medium-sized (SME) businesses and corporate giants alike worried. Given the rapidly-changing economic climate, the stakes of prospective budgetary transitions could not be higher.
In recent months, reports have suggested that our economic locomotive is having difficulty keeping up the pace, causing great concern among America’s business leaders. The anticipated tax increases in the upcoming Budget are expected to further unsettle both businesses and households, compounding existing challenges. Companies, especially SMEs, have been exposed to increased risk in this volatile context.
Given all the changes coming down the pipe, corporations should do everything they can to cut themselves off from economic catastrophe and market chaos. Because small- and medium-sized enterprises usually don’t have the bandwidth to handle missing unexpected cash flow, advance preparation is key. Industry insiders agree that getting access to flexible financing will be the key in steering through any rough waters. The need for strong foreign exchange (FX) hedging strategies. Currency and regulatory issues can develop in unpredictable ways, especially if a company’s currencies are volatile.
The lead-up to Christmas is always a make-or-break time for many companies. Those dreams of a real rebound are being cooled by rising economic malaise. This time of year is a big boost for the holidays and big consumer spending might gloom in this climate on shoppers and businesses both.
With the Budget fast approaching, it’s essential that companies stay alert and active in their planning. They need to proactively develop their fiscal plans with an eye towards upcoming tax increases and their long-term impacts. Businesses have to get ready on all fronts to come out ahead during this unpredictable period. Our need for this kind of stability has only grown in urgency.