You Saw the Wave Coming: How UK Businesses Can Adapt to Rising Costs
06/10/2025 • Tony Brown
I recently spoke with an organisation heavily reliant on its people. Their structure hadn't changed year-on-year, but a perfect storm hit: the rise in National Insurance and salary inflation have dramatically disrupted their financial model.
This wasn't a surprise. The wave was on the horizon. But like many businesses caught in the day-to-day, they didn't shore up in time.
The Reality Behind the Numbers
A recent survey of 500 UK businesses found:
- 33% plan to cut staff
- 46% will raise prices
- 35% intend to freeze recruitment
All directly linked to the April National Insurance increases.
If a third of companies are cutting people to stay afloat, this isn't about chasing profit – it's about adapting to a fundamental shift in the cost base.
"We Know Our Business – We Don't Need Consultants."
It's a common view, and in many cases, it's justified. But being good at what you do doesn't mean you can see everything from the inside.
You've built a great business. You know the people. You understand the customers. But when you're inside the bubble, it's easy to miss what's just outside the frame.
Sometimes, a fresh perspective isn't about pointing out what's wrong – it's about seeing what's next.
Consultants Aren't Just for When It's Broken
Whether it's IT, cyber, tax, accounting, legal, or business strategy, good consultants don't just fix things – they spot what needs rethinking before it breaks.
- That structure that worked two years ago but now feels bloated
- That hidden cost that's quietly bleeding your margin, month after month
- That opportunity you keep saying "we'll look at next quarter"
You don't always need outside help. But when the landscape shifts, perspective can be priceless.
It's Not Always About Cutting People
Adapting to rising costs doesn't have to mean making cuts. Sometimes it's about:
- Streamlining processes to eliminate duplication
- Reducing waste in systems and workflows
- Freeing up your people to focus on what really matters
- Increasing capacity without increasing headcount
Growth requires capacity. And capacity doesn't always mean more people – it means smarter operations.
What Adapting Actually Looks Like
The businesses that will thrive in this environment aren't just reacting to rising costs – they're proactively reassessing how they operate.
This might mean:
1. Clarifying Roles and Responsibilities
Are your people clear on what they're responsible for? Or is there overlap, confusion, and duplicated effort? When roles are unclear, work takes longer, decisions stall, and frustration builds.
Defining clear ownership and accountability creates efficiency without adding headcount.
2. Tightening Systems and Processes
How much time is wasted on manual tasks, chasing information, or working around broken systems? Small inefficiencies compound quickly.
Investing in better systems – or simply documenting and standardising processes – can free up significant capacity.
3. Aligning Effort to Impact
Not all activity creates value. Are your people spending time on high-impact work, or are they buried in low-value tasks that could be automated, delegated, or eliminated?
By focusing effort on what truly drives results, you increase output without increasing cost.
4. Building Flexibility into Your Structure
Rigid structures work well in stable environments. But when costs fluctuate and markets shift, flexibility is essential.
This might mean:
- Using fractional or part-time expertise instead of full-time hires
- Cross-training teams to cover multiple functions
- Building scalable processes that can expand or contract with demand
The Cost of Doing Nothing
The businesses that will struggle aren't the ones facing rising costs – every business is facing that. The ones that will struggle are those that wait too long to adapt.
If you're feeling the pressure now, it won't ease on its own. The question isn't whether costs will rise – it's whether you'll be ready when they do.
You Don't Have to Do This Alone
If you're inside the business every day, it's hard to step back and see the full picture. That's not a weakness – it's just reality.
An independent perspective can help you:
- Spot inefficiencies you've become blind to
- Identify opportunities you haven't had time to explore
- Challenge assumptions that might be holding you back
- Prioritise actions that will have the biggest impact
You don't need consultants to tell you how to run your business. But you might need them to help you see what's possible – and what needs to change before the next wave hits.
The Bottom Line
The wave was visible. The costs were coming. The businesses that prepared are navigating this period with confidence. The ones that didn't are scrambling.
But it's not too late.
By pausing, reassessing, and adapting – by tightening systems, clarifying roles, and aligning effort to impact – you can weather this storm and position yourself for what comes next.
The businesses that pause, reassess, and adapt won't just survive the next wave – they'll be ready to ride it.
If rising costs are putting pressure on your business and you're not sure where to start, a Company Health Check can give you the clarity you need. We'll assess your structure, systems, and operations – and show you exactly where to focus to increase capacity without increasing cost.
