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What is the forecast for businesses in 2024?

by Tech Reporter
22nd Nov 23 1:36 pm

The extension of the ‘full expensing’ scheme until 2026 is positive for UK businesses, but while economic challenges persist, SMEs need to be strategic.

Avoid FOMO, and allocate IT budgets carefully, focusing on productivity and cybersecurity for sustained success in the evolving business landscape.

Matt Parker, CEO at Babble, said, “It’s encouraging to see Hunt extending the ‘full expensing’ scheme to 2026. This flagship reform will provide a boost to British businesses, giving them a 25% tax deduction for significant portions of their IT expenditure.

“This extension is particularly good news for SMEs looking to grow. According to Barclays Bank, Britain’s most innovative SMEs are spending 48% of annual revenue on technology. A tax reduction on this investment will allow more SMEs to effectively compete with industry giants.

“Whilst British businesses continue to face economic turbulence, I hope SMEs seize the opportunities this scheme presents, arming themselves with the technology to compete and thrive alongside the big players in the business arena.

“However, my advice to SME leaders in this age of increasing investment in AI is don’t give in to FOMO. Budgets are still tight so balance your IT spend between two areas for now.

“The first is investing in technology that will grow a business by unlocking productivity gains. The second is to invest in technology that will protect that growth, in particular in cyber security where threats multiply daily.

“But to make these investments effective, leaders should ensure they have the right skills and resources to use technology effectively – doing otherwise is a productivity drain, not gain.

“By investing in the right technology, SMEs can not only survive, they can flourish in today’s fast- paced, but challenging, business landscape.”

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