Since coming in to power, the Labour government has announced a raft of policy changes, creating a huge opportunity for Professional Services organisations whose expertise advice will be in high demand from corporate and private clients.
In this article, we look at the key developments for Professional Services firms and how they can capitalise on these opportunities.
What are the key developments?
Employer National Insurance contributions (NICs)
Perhaps the most significant announcement in the Autumn Budget was the increase in NICs; rising from 13.8% to 15%. Accountancy firm Oldfield Advisory have developed a useful calculator that enables businesses to work out the cost implications of these changes.
Capital Gains Tax (CGT) rises
Two changes have been announced on CGT; raising the basic rate to 18% and the higher rate to 24%. This has ramifications for investors, property owners and business owners across the country. Shipleys has published a detailed guide on these changes here.
Inheritance Tax increases
Labour’s inheritance tax reforms which come in to effect in April 2026, cap business and agricultural property relief at £1 million. This impacts family-owned farms and businesses and has been met with huge backlash from high-profile figures such as Jeremy Clarkson.
An increase to Minimum Wage
Labour have committed to increasing the National Living Wage for workers aged 21 and over by 9.6%. The Centre for Policy Studies have estimated that this (when combined with other relevant tax increases) could cost businesses £2,000 more for each worker they employ.
The Employment Rights Bill
The new Employment Rights Bill means that millions of employees are set to receive enhanced sick pay, maternity benefits and stronger job protections. Zero hours contracts, ‘fire and rehire’ and unfair dismissal are all also set to be abolished.
Who do these reforms benefit?
Accountants and Tax Advisers
The introduction of widespread new tax policies and regulatory reforms has generated a huge surge in demand for accountants and tax advisers across the UK. The Times reported that audit fees from Britain’s biggest companies reached record levels in 2024 and early indicators suggest that 2025 will see demand rise further.
Legal services
The UK’s legal industry is one of its most prominent exports and has exhibited consistent growth despite challenging economic conditions. Given the wide-reaching nature of the changes that Labour has announced for both businesses and employees, there are huge opportunities for lawyers specialising in areas such as Tax, Property, Employment, Pensions and beyond.
Wealth Managers
Labour’s changes to CGT have already generated a spike in demand for financial advice and wealth management services. Even before reforms were confirmed in the Autumn Budget, wealth managers were reportedly already receiving a huge increase in enquiries from panicked clients (The Telegraph).
Employee perks and benefits
The changes Labour have made to Tax and National Insurance have led many businesses to warn that they will be unable to offer pay rises as they look to manage increased costs. Recruitment and retention remain to be key challenges for businesses so employers may look to alternative solutions to keep staff engaged such as employee perks and benefits companies.
What are the opportunities?
The Financial Times recently published a story with the headline ‘Punching above its weight: Professional services drive UK economic growth’, reviewing the soaring growth of the industry in 2024. CEOs also seem confident about their prospects for 2025, a sentiment uncovered by our recent research on 150 industry leaders.
Media interest in the sector is soaring. In the weeks following the Autumn Budget, mentions of ‘Professional Services’ in UK news outlets increased by 16%. Between October and January there were almost 400,000 news stories published by UK media outlets focused on Tax – a huge 49% increase (Source: Meltwater). We have seen a marked rise in enquiries from journalists looking for expert commentary and insights from clients across the spectrum of Professional Services. This journalist interest presents a fantastic opportunity for businesses looking to communicate their expertise, enhance their reputations and build trust from their key audiences.
This press attention is also being matched by online searches. Google searches for ‘Financial advice’ have increased by 21% in the last three months and searches for ‘Accountant near me’ have skyrocketed by 83% (Source: Google Keyword Planner). Digitally savvy firms should be investing resource in SEO-optimised content and paid media to help grow their audiences, drive website traffic and attract new clients.
2025 presents a huge commercial opportunity for Professional Services firms that are willing to grasp it with both hands. If you’d like to discuss how our experts in Professional Services could support you, get in touch today.