Member Update: Navigating Tax, Wage, and Apprenticeship Changes – We Need Your Input

Recent announcements surrounding tax increases, wage adjustments, and apprenticeship funding have sparked uncertainty across industries, including landscaping. These measures, designed by the Government to address the UK’s fiscal challenges, are expected to have complex and far-reaching consequences for businesses from recent responses across industries. To fully represent our members’ interests, we ask you to complete our survey or email us directly to share your insights, technical@bali.org.uk. Your feedback will help us frame our discussions with the Government and wider industries.

The survey can be accessed here

Tax Burden Threatens Growth

The Government’s plan to address a £22bn shortfall in public finances with a £40bn tax take is set to raise tax levels significantly. While this may help stabilise state spending, it comes with considerable risks to private sector activity, business investment, and trade. For landscaping businesses, these financial pressures present a daunting challenge, with limited opportunities for immediate growth and prospects likely deferred to the longer term.

The Association strongly encourage members to share their views and concerns on how these budgetary measures may impact their businesses. By doing so, we can develop targeted lines of enquiry, advocate more effectively on your behalf, and shape the support needed for both our members and the wider industry. Your input is essential to ensure we address these challenges together.

National Insurance: Pressures on Employment Costs

The rise in employer National Insurance contributions adds another significant obstacle for the landscaping industry, where reliance on skilled labour is critical. Wider commentary suggests these increases are likely to dampen wage growth, with many employers expected to offset the added costs by reducing wages or raising prices for consumers.

This change disproportionately affects lower-earning roles, potentially encouraging greater reliance on self-employment models that often lack stability and worker benefits. When combined with the sector's existing recruitment challenges, these developments could further hinder efforts to attract and retain staff—an issue of particular concern as demand for landscaping services continues to grow.

While the Employment Allowance may provide some relief for the smallest businesses, its benefits for most members remain uncertain. To help us fully understand and address these challenges, the Association urges members to complete the survey or contact us directly to share your views and experiences. Your input is vital in shaping our advocacy efforts and ensuring your needs are represented.

Living Wage and Apprenticeship Costs

From April, the National Living Wage will rise by 6.7% to £12.21 an hour. While this increase benefits workers, it places additional strain on businesses’ payroll budgets. For members employing apprentices, the minimum wage rise to £7.55 per hour—a significant 18% increase—presents yet another financial challenge.

Surveys from other sectors indicate that these changes may prompt many employers to freeze or reduce apprentice hiring. For members already navigating skills shortages, such actions risk undermining long-term stability and growth, with potential knock-on effects for the communities and clients our industry serves.

If rising wage and apprenticeship costs are affecting your business operations, we urge you to share your insights with us by completing our survey or contacting the Association directly. Your feedback is essential in helping us incorporate these challenges into our advocacy efforts and develop stronger support for members.

We Need Your Voice

Understanding the specific impacts of recent budget announcements on landscaping businesses is vital. The Association is committed to ensuring the Government recognises the sector's needs and that future policies foster growth and sustainability rather than unintentionally hindering it.

While the Association cannot directly reverse the budget decisions, your experiences and insights into their short, medium, and long-term effects are essential. By sharing your thoughts, we can build targeted campaigns in other areas, such as advocating for renewed access to rebated fuels and increased flexibility for double cab truck users—issues that directly affect our members.

The Association encourages members to take a few moments to complete our survey or email us with your feedback, technical@bali.org.uk. Together, we can shape the conversation and advocate for a stronger, more resilient future for the landscaping industry. Your voice matters—let’s ensure it is heard.