Cleaning Hygiene Today Cleaning Hygiene Magazine
Stuart Conroy, Commercial Director at Peartree Cleaning Services, comments on the impact of the latest Budget on Peartree and the wider cleaning industry.
“Whilst the Autumn Statement did not increase direct business taxes, it also did nothing to inject cash or confidence back into business, nor did it seek to repair the lingering damage caused by the previous Budget – damage that continues to affect service-led sectors such as cleaning.
“National Living wage at £12.71 per hour, a 4.1 per cent uplift was widely anticipated and aligns with the recommendations of the Low Pay Commission. With inflation forecast to sit around 2.5 per cent by April 2026, this equates to a real-terms wage rise of roughly 1.6 per cent. While positive on paper, this is unlikely to encourage non-workers to consider roles in the service sector, particularly in cleaning, where recruitment challenges are already well-documented.
“Alongside the Budget, the Government announced its acceptance of a House of Lords amendment to the Employment Act introducing a six-month qualifying period for unfair-dismissal claims. This follows an earlier and equally impactful element of the Act – Day One Sickness benefits. At Peartree, we anticipate that this single change will double our sickness-related costs. Coupled with a lower threshold for Employer National Insurance Contributions, these additional expenses will also attract a further 15% ENIC burden.
“If the long-term objective of any Government is to minimise unemployment, strengthen GDP per capita, and reinforce Treasury revenues through a thriving, productive workforce, then this Budget does little to signal such ambition. Instead, it introduces pressures that risk constraining growth in people-intensive industries.
“Finally, the increase in dividend tax, when combined with rising employment costs, creates yet another disincentive for entrepreneurs to start or expand labour-reliant businesses. At a time when the UK economy relies heavily on SMEs and service-sector resilience, this feels counterproductive.
“In summary, while stability may have been the stated goal of the Autumn Statement, the measures announced are likely to test the cleaning industry further, increasing operational costs without offering a clear pathway to improved recruitment, productivity, or growth. Peartree, like many in the sector, will continue adapting, but the Budget offers little reassurance that government policy is aligned with the needs of service-based employers.”
