Unpacking the Autumn Statement 2024

As the dust settles on Labour’s first budget since taking office, many in the membership sector are now taking stock. As expected, this budget signals some big changes across wages, taxes, and business costs that will shape how many membership organisations plan for 2025 and beyond. 

Here’s a breakdown of what’s changing and how membership organisations can prepare for the road ahead: 

Minimum wage increase means rising costs (and new engagement opportunities?) 

A key announcement is the 6.7% increase in the National Living Wage, which will rise to £12.21 an hour for those aged 21 and over. For membership organisations, this may mean adjusting payroll budgets, particularly for roles at entry levels. However, the wage hike could also mean a larger pool of individuals with disposable income, making memberships and professional development programs more accessible to a wider audience. 

Membership organisations might see this as an opportunity to attract younger professionals who benefit directly from the wage increase. With more earning potential, individuals may be more inclined to invest in memberships that offer career growth, industry connections, or skills training, helping to build a more engaged and financially stable member base. 

Balancing rising National Insurance costs with Employment Allowance relief 

October’s budget also announced employer National Insurance contributions will rise from 13.8% to 15%, and lowers the contribution threshold from £9,100 to £5,000. For many membership organisations, this means increased employment costs. 

However, Labour’s boost to the Employment Allowance - from £5,000 to £10,500 - will also offer much-needed relief to many, especially smaller organisations. It means that 865,000 UK businesses will not pay any NI next year, and an additional one million will pay the same, or less, as they did previously. 

This change will hopefully allow a number of organisations to continue recruiting or retain critical talent without significantly impacting their bottom line. It’s also a good chance for organisations to look at creative staffing solutions, focusing on roles and skillsets that bring the most value to members. 

More incentives for electric vehicles 

Labour’s budget has supported the adoption of electric vehicles (EVs) by maintaining current incentives for fully electric company cars and introducing greater tax differentials between electric and non-electric vehicles starting in 2025. 

For membership organisations with transport needs - whether for events, member outreach, or logistics - switching to EVs could lower costs while also aligning with sustainability goals. This shift can also resonate well with members who prioritise environmental responsibility. For organisations that promote sustainability as a key value, adopting EVs or supporting green policies can be an invaluable point of engagement and brand alignment, in turn boosting member loyalty and retention. 

Adapting to increased Capital Gains Tax and carried interest rates 

The budget confirmed an expected rise in Capital Gains Tax (CGT), with rates on most assets increasing to 18% at the lower rate and 24% at the higher rate. CGT on carried interest will increase to 32% from April 2025, with further reforms expected in 2026. 

For any membership organisations holding investments, this tax increase may prompt a necessary review of financial strategies. By planning proactively, organisations can keep investing in initiatives that directly support members - whether through expanded services or new development programs - ensuring resources are used effectively to promote member growth and engagement. If you’re now looking at your finances after the budget, click here to read our recent blog: Essential Year-End Finance Tips for Membership Organisations 

Growth and investment commitments could mean new partnership opportunities in key sectors 

Labour’s commitment to long-term growth includes a £100 billion investment over five years in capital spending and targeted funding in sectors such as healthcare, education, and green technology. For membership organisations, these areas of investment open up partnership opportunities to provide value through training, certifications, and upskilling initiatives that can benefit members. 

These growth areas can also serve as valuable engagement points, building stronger communities around shared values and interests. Public-private partnerships may help the membership sector reach new audiences and expand influence in areas that align with these goals, reinforcing organisational missions and increasing relevance. 

What’s next? 

As we all adapt to the changes Labour’s new budget brings, strategic planning and adaptability will be more important than ever. From adjusting to wage and tax changes to exploring partnerships in healthcare, green tech, and education, there’s an opportunity to align organisational goals with broader societal shifts. 

While the budget introduces new challenges, it also opens doors for membership organisations to expand their impact and foster connections that deepen member engagement. By thoughtfully allocating resources, investing in the right talent, and developing programs that address changing member needs, you can make sure that your organisation stays resilient and member-focused.  

We can support your future plans by finding you talented people with the skills you need! Click here to contact us.