As we welcome 2025, UK small and medium-sized enterprises (SMEs) are at a pivotal moment. 

With new government policies reshaping the business landscape, growth opportunities abound—if you know where to look and how to adapt.

At Northstar Consulting, we work alongside businesses like yours to help navigate these changes with clarity and confidence. Let’s explore the key developments shaping this year and how you can position your business to succeed.

Tax Reforms and Financial Incentives: A Chance to Boost Growth

The government’s 2024 Budget introduced several significant changes designed to stimulate the economy.

These include:

• • A 2% reduction in National Insurance Contributions (NICs) from April 2024, making it more affordable for SMEs to expand their teams.

• • An increased VAT registration threshold to £90,000, offering relief to smaller businesses.

• • The permanence of full expensing, allows businesses to claim the total cost of qualifying investments in a single year.

These reforms are designed to lower operational costs and encourage reinvestment into business growth.

How to Take Advantage:

Start by assessing how these changes will impact your cash flow and profitability. Consider whether capital investments—such as upgrading equipment or expanding facilities—might make sense for your business under the full expensing scheme.

At Northstar Consulting, we’re here to help you confidently make these decisions. Our tailored financial reviews ensure your strategies align with these opportunities, leaving no stone unturned in boosting your bottom line.

Enhanced Business Support Services: Expert Help, When You Need It

The new Business Growth Service has been launched to simplify SMEs’ access to resources and advice. This initiative promises streamlined pathways to funding, guidance, and expertise tailored to your growth ambitions.

How to Make It Work for You:

Take full advantage of the advice and resources on offer. Whether you’re planning to scale, access funding, or pivot to new markets, timely support can make all the difference.

We can help you cut through the noise and identify the most relevant opportunities for your business. By combining the insights offered by government services with our in-depth consultancy, we ensure your strategy is both practical and forward-looking.

Public Procurement and Social Value: Winning Through Community Impact

The government is increasingly placing social value at the heart of public procurement.

This means businesses that demonstrate their positive impact—through local job creation, sustainability efforts, or community initiatives—are more likely to secure government contracts.

What This Means for SMEs:

Now is the time to highlight the broader impact of your business. Ensure your tender submissions effectively communicate how your operations align with government priorities.

Northstar Consulting can help refine your bids, ensuring your social contributions are showcased effectively. From developing strategies to embedding social value into your operations, we’re here to help you stand out in this competitive landscape.

Innovation and Industrial Strategy: Leading the Way in Emerging Sectors

Innovation remains a key focus of the UK’s industrial strategy, with government backing for green energy, technology, and other forward-looking sectors.

For SMEs, this represents a chance to access funding, collaborate on cutting-edge projects, and enter high-growth markets.

Your Next Steps:

Explore opportunities in your sector and consider investing in research and development to stay ahead. Collaboration—whether with universities, research institutions, or government programmes—can open doors to new possibilities.

With our expertise, Northstar Consulting can help identify these opportunities and connect you with the right partners. Together, we’ll position your business at the forefront of industry innovation.

Economic Growth Projections: Adapting to a Changing Market

While the UK economy is expected to grow by 1.5% this year, challenges remain, from shifting consumer behaviours to evolving market demands.

Staying agile and responsive is key.

Preparing for the Road Ahead:

Developing a robust strategic plan will help you stay aligned with emerging trends.

Monitoring market conditions and adapting your offerings to meet demand are essential for long-term success.

At Northstar Consulting, we provide the insights and strategies that help businesses thrive in changing environments. From market analysis to operational optimisation, our goal is to equip you with the tools you need to stay ahead.

Why Partner with Northstar Consulting?

At Northstar Consulting, we don’t just offer advice—we partner with you to turn insight into action.

Our deep understanding of the UK’s economic landscape, combined with our tailored approach, ensures your business is ready to tackle challenges and seize opportunities.

Here’s how we can help:

• • Navigate complex regulatory changes and maximise financial incentives.

• • Access funding and resources tailored to your business needs.

• • Enhance your social value impact and competitiveness in public procurement.

• • Develop innovative strategies that position your business for long-term growth.

As we embark on 2025, the opportunities for SMEs are immense—but so is the complexity of the journey ahead. Let us guide you through it.

Visit www.northstar-consulting.uk to learn more about how we can support your business in achieving its goals this year.

Get a free Consultation today!