There has already been much commentary on this week’s Budget, which was a defining milestone for the new government in setting its vision for economic resilience and long-term growth. For businesses, it was a reason to brace for impact.
For constituents of the Service Nation in particular, there was a lot to take in. From increases to the National Living and Minimum Wages and pledges to crack down on shoplifting, to freezing business rates and the billions pledged to improve vital public services – it all matters.
However, the Chancellor’s announcements on Wednesday will not have been universally welcomed. There will be pain as a result, with the potential to impact smaller businesses, in particular.
Only time will tell what impact the increase in employers’ National Insurance contributions will have. But one thing is for certain: the Budget has provided a baseline – a degree of certainty that businesses can build from – and reinforced the vital need for sustainable growth. I hope that once things settle down, we will see a move away from short-term thinking and start considering the long-term impacts of policy changes and business decisions – with a real focus on how the service agenda can achieve the growth we all need.
Some key takeaways
This week, I’d like to focus on two specific elements from the Chancellor’s economic plans. The first is National Insurance contributions and the rise in the minimum wage. Undoubtedly, this will impact all businesses to varying degrees.
Whatever the intentions, to deliver economic growth for the UK, SMEs (often referred to within government as ‘the engine of growth in our economy’) need the financial scope to hire the people they need to expand and to remain focused on what truly matters: delivering quality customer service.
Recognising the impact and importance of frontline workers through the rise in the minimum wage will perhaps help us all recognise the critical nature of these roles in driving the service profession forward. All organisations, large or small, will need to invest in these people to keep them engaged and connected to our businesses.
Second is the promise of increased investment to revive public services across the board, from railways to the NHS.
The pledged £55bn spending increase for public services holds genuine transformative potential, providing an opportunity to improve the quality of these services for patients and customers. However, this figure is just the starting point.
What will prove essential in the long-term effectiveness of this spending is that it is coupled with deep and meaningful reform to deliver genuine service and productivity improvements, rather than merely prop up a struggling system.
So, what now?
As we all digest the Budget over the coming weeks and months, leaders in both business and government should be crystal clear about how they plan to build on these foundations and invest in ways that drive the growth the nation needs.
A robust focus on the service agenda, with clear and coherent leadership, is essential given customer service is a fundamental driver of our nation’s growth and prosperity – a key pillar in our framework for building the Service Nation.
Beyond enhancing productivity, investing in customer service helps to build trust, drive consumer spending and loyalty, and foster repeat business. Ultimately, this opens new job opportunities and strengthens bottom lines.
To accomplish all of this – whether in private organisations, across public services, or in government, we need to see sustained investment in service as the first and necessary step towards achieving sustainable growth.
Related Posts
