Posted on 12th November 2024
The UK Budget 2024 introduces changes that will significantly impact riding schools through increases in the minimum wage and new employment regulations which are not offset by targeted support for sporting and leisure. While the ABRS+ supports better conditions for employees, we remain concerned that the changes, taken as a whole, will place significant commercial stress on hard pressed riding schools.
Starting in April 2025, the National Living Wage for workers aged 21 and over will rise by 6.7% to £12.21 per hour, while wages for younger workers will also see substantial hikes. This increase will likely raise operational costs, as many riding schools employ staff at or near minimum wage levels. Additionally, changes to employer National Insurance Contributions (NICs), set to rise from 13.8% to 15% in 2025, add further financial pressure on riding schools that may already face tight budgets. Coupled with rising inflation and no specific reliefs for rural or leisure businesses, these wage and tax adjustments could challenge smaller schools to maintain current staffing and service levels. The Employment Rights Bill 2024 introduces further protections for workers, such as guaranteed contracts for those in non-standard work, which could affect riding schools reliant on part-time or flexible staff. While these protections aim to improve job stability, they may also add administrative burdens for small business owners.
Another relevant factor is the government’s broader approach to public spending. The budget focuses heavily on health, infrastructure, and defence, but it doesn’t include direct support for rural businesses or leisure facilities like riding schools. While there is significant investment in broader infrastructure, such as in local communities and housing, there has been no specific allocation for supporting recreational or educational services related to equestrian activities. Without targeted financial support or relief in business rates, which are a major expense for riding schools, many riding schools might struggle to balance these rising costs against static or modest revenue. This challenge is compounded by the general economic context of modest growth expectations and a projected rise in inflation, which could further tighten budgets for both these businesses and their customers.
In summary, while there is no direct policy targeting riding schools, rising employer costs and a lack of direct support may pose financial challenges. Riding schools, therefore, may need to reassess staffing and pricing structures to accommodate these legislative and cost shifts in 2025. In some case, these pressures will be too great and will lead to Riding School closures.
