With significant tax increases, forward-thinking businesses are turning to used pallet racking as a smart, cost-effective way to cut expenses and boost efficiency without compromising growth.
From this April, we have seen two major changes come into effect: employers’ National Insurance contributions are increasing from 13.8% to 15%, and the threshold for employee earnings subject to NI is dropping from £9,100 to £5,000. At the same time, Chancellor Rachel Reeves is raising the minimum wage for most adults by 6.7%.
Industries such as retail, leisure, and warehousing are sounding the alarm, especially as additional pressures mount from rising energy costs and new inheritance tax rules that threaten family-owned warehouse businesses.
Why used pallet racking makes sense now
With business overheads rising, many companies are looking for immediate, affordable ways to adapt – and used pallet racking is proving to be one of the smartest investments.
By installing high-quality second-hand pallet racking systems, businesses can:
- Maximise existing warehouse space without the cost of expanding or relocating.
- Improve organisation and picking efficiency, which helps manage increased staffing costs by getting more from your current workforce.
- Avoid disruptions by increasing storage capacity and maintaining stock levels during supply chain volatility.
- Preserve capital by avoiding large outlays from buying brand-new systems
In sectors hit hardest by these changes – particularly those relying on large workforces and storage facilities, used pallet racking offers a flexible, scalable solution with much lower upfront investment.
Mounting pressure on retail sectors
Retail leaders have already expressed concerns that tax hikes will drive up prices and put jobs at risk. A coalition of over 80 major brands including Tesco, Amazon UK, and Boots has warned that the cumulative impact of tax changes, business rate hikes, and new packaging levies could add £7 billion to their annual costs.
Retail operations often hinge on logistics performance from back-of-store storage to large-scale distribution hubs. Used pallet racking allows these businesses to quickly adapt to new demands and manage growth, without waiting months for expensive new systems.
Challenges for family-run warehouse businesses
Family-owned warehouses are facing a “seismic shift” in inheritance tax rules set for April 2026. The UK Warehouse Association warns that previously exempt assets could now face a 20% tax burden, forcing businesses to restructure and seek significant savings. Opting for used pallet racking is a logical step as it offers flexibility for growing or reorganising operations while helping to preserve capital.
Supporting sustainability stratigies
In addition to being cost-effective, used pallet racking is a highly sustainable choice. It reduces waste, extends the lifecycle of industrial materials, and supports a circular economy—key priorities in modern supply chain management.
As we move into a new era of warehousing, sustainability is no longer optional, it’s a business imperative. We’re seeing more sustainable design and functionality, driven by economic, technological, and environmental factors, where warehouses of the future are optimised for sustainability, aesthetics and long-term productivity.
Used racking plays a vital role in this evolution, offering the flexibility and adaptability required to meet these new demands, without the environmental cost of manufacturing new materials. For businesses that want to align operational efficiency with sustainable practices, it’s the smart choice for today and tomorrow.
Used pallet racking is a fast, effective way to make your space work harder in today’s tough economic climate. With tax increases and energy prices rising, it pays to be smart about infrastructure.
Get in touch today to find out how our expert team can help you build resilience and reduce costs with premium used pallet racking.
Call us today on 0113 253 3304 or click the link below to request your free, no-obligation quote.