Our Co-founder and CEO, Faustina Anyanwu, evaluates the Spring Statement and its potential effects on our members.
Yesterday, Chancellor Rachel Reeves delivered the Spring Statement 2025, and we have noted several points that could directly affect Divas of Colour members, who are predominantly working female small business owners and professionals.
While we continue to analyse the full implications in detail, we have now opened a consultation window to provide specific guidance and resources to our members on adapting to these changes through our weekly Member Clinic (Note: available only to logged in members).
Increased Employer National Insurance Contributions: From April 2025, employers’ NICs will rise from 13.8% to 15%, and the threshold for paying it will decrease. This will increase the cost of employment for Divas of Colour members who have staff, potentially impacting their ability to hire or grow their teams, as highlighted by small business experts.
No Specific Relief for Small Businesses:Despite concerns from business owners about rising employment costs and the overall economic climate, the Spring Statement didn’t offer significant new relief measures for small businesses. This is very disappointing for members, just like other small business owners, who were hoping for more direct support. This could also mean more women may face job losses as employers grapple with the increased cost of employment while trying to balance flexibility for working mothers.
Downgraded Growth Forecast: With the Office for Budget Responsibility (OBR) reducing its growth forecast for the UK by half in 2025, economic instability is anticipated. This shift is expected to dampen consumer spending and erode business confidence, leading to decreased demand for the offerings of smaller enterprises. A definite negative impact awaits for female-led businesses. Coupled with frozen tax threshold and inflation which is forecast to average 3.2% in 2025, small businesses are set to face higher tax burden over time.
Increased Compliance Checks: HMRC will receive more funding to strengthen its compliance systems. This means businesses should expect greater scrutiny around VAT, PAYE, and Corporation Tax, requiring careful attention to digital record-keeping and timely submissions to avoid penalties. Also, the timeline for Making Tax Digital remains unchanged, with more businesses needing to adopt digital record-keeping.