Managing Principal Viewpoint

Striking a balance between affordability and growth

Spring always brings a renewed sense of energy and optimism. Yet for many UK organisations, this season has brought fresh challenges as they continue navigating the tricky balancing act between affordability and growth. It’s a tension that enterprises of all sizes are grappling with – and one the Government seems to be wrestling with too.

This issue of Shipshape focuses on that very theme: practical strategies for sustaining growth while keeping an eye on affordability and resilience. From coping with rising costs to planning for future investment, we hope the insights shared across these pages offer timely support.

Higher employment costs

A key challenge, of course, is the rise in employers’ national insurance contributions (NICs). Some businesses are also facing rising business rates, as well as the fallout from the new US tariffs.

On page 2, we explore practical ways to manage the additional cost – whether through identifying operational efficiencies, smarter resourcing, alternative remuneration models or making use of available allowances.

Government action

On page 6, we summarise the Chancellor’s recent Spring Statement, which set out the Government’s efforts to manage this same balancing act. Fiscal caution was evident, and there were moves to tackle public spending and get the UK on a stronger growth trajectory.

Our most recent Shipleys Business Club session explored the issue of what it means to build financial resilience while still pursuing growth ambitions. A few takeaways stood out. Firstly, the businesses best positioned to grow in today’s climate are those that develop robust financial strategies and regularly stress-test their financial models.

Secondly, businesses with a firm grip on costs and cash flow and which empower their people to identify efficiency gains are also more likely to succeed.

Thirdly, while its tempting to focus on the short-term when times are tough, it’s essential also to maintain a long-term focus. That means investing time to leverage finance options, diversification or strategic partnership opportunities to strengthen sustainable resilience and growth. Read more in our summary of the session Financial Stability: Practical Approaches for Growth-Minded Businesses

Upskilling, engagement and productivity

Alongside managing costs, retaining and developing skilled people is another area where investment feels essential. As we cover on page 10, upskilling teams is not just a ‘nice to have’ – it’s a key driver of productivity and competitiveness. From another Business Club discussion this year, we’ve highlighted some practical and affordable tips to help teams enhance their capabilities, become more productive and stay motivated.

Staying compliant in a changing landscape

With ongoing cost pressures for both businesses and individuals, it’s vital to remain alert to the increasing pace of regulatory and tax change. This issue includes several important updates across areas like transfer pricing (page 3), payroll (page 5) and personal tax (page 7). Staying compliant avoids costly penalties and gives everyone the clarity they need to plan with confidence.

Looking ahead: a new chapter

On the subject of change, Shipleys is now just days away from rebranding fully to Moore Kingston Smith on 6 May. It’s an exciting milestone and one we’ve been preparing for carefully. I’d like to sincerely thank everyone – across both firms – who has worked tirelessly behind the scenes to make the transition as seamless as possible. You’ll find an update on page 9.

Download your copy of Shipshape Spring 2025

Our final Shipshape

This, as it happens, is my final leader for our final edition of Shipshape. On behalf of all the magazine’s production teams, it’s been a privilege to share insights with you through these pages over the years. I’m immensely proud of how this publication has helped keep our clients and contacts informed through decades of dramatic change in the world of business and finance.

Rest assured that while Shipshape may be retiring, our commitment to keeping you informed is not. Under the Moore Kingston Smith brand, we will continue to share timely advice, insights and practical tips via their website, e-bulletins and webinars.

Steve

Steve Foster, Managing Principal

Shipshape articles are intended to create awareness of issues and specific advice should be obtained before taking action, or refraining from taking action in relation to the topics covered. If you would like advice or further information, please speak to your usual Shipleys contact.

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