IAB January News Round-up

As we turn the page to 2025, here’s a quick, yet essential, roundup of the top stories impacting the small business landscape. 

Wages on the Rise Amid Economic Uncertainty

In an unexpected twist, wages grew by 5.6% in the final quarter of 2024, even as concerns loomed over job losses following Rachel Reeves’ debut Budget as Chancellor. This growth unfolds against a backdrop of a softening labour market, a volatile bond environment and a rise in unemployment. While the numbers offer a silver lining, the broader picture points to turbulence ahead for employers and employees alike. 

GDP Growth Crawls Forward 

November's GDP figures reveal a tepid 0.1% increase, underscoring the fragility of the UK’s economic recovery. Despite steady progress throughout 2024 after the chaos of the 2023 Mini Budget, these figures are a stark reminder of the delicate balancing act required to sustain growth. Advisers might want to keep an eye on these trends as clients navigate these challenging waters. This is something I'm sure we will be discussing in our Ambassador groups. 

New Business Growth Service Launched 

In a bid to simplify access to Government advice and resources, HMG has introduced the Business Growth Service. This ‘one-stop-shop’ aims to streamline support for SMEs, cutting red tape and saving valuable time for business owners. While it’s a step in the right direction, critics point out that the UK’s 5.5 million small businesses still lack a unified, forward-looking support strategy. Time will tell if this new initiative delivers meaningful results. 

And don’t forget we have our very own ‘growth service’ with the Practice Scalability Framework which our CEO Sarah has been talking about in the magazine, at Accountex and in recent Coffee Mornings. Read here.

Compliance Fatigue Hits Hard 

A report by SmartSearch paints a concerning picture: 72% of regulated companies feel overwhelmed by the growing complexity of compliance regimes, particularly in anti-financial crime. The increasing demands are leaving businesses feeling stretched and anxious—an issue bookkeepers and accountants are well-placed to help address through proactive support and expertise. This is something we recognise at IAB and have been looking to address with the introduction of AML Complete.