National and local government policies influence all businesses, and these policies are constantly changing.
Government policies bring change to the business environment. Policies are measures introduced by governments to tackle challenges faced by citizens and make the country a safer and more productive place.
Examples
National Minimum Wage & National Living Wage
The government have enforced a minimum hourly wage for all above school leaving age and national living wage for workers 21 years and older.
This rate changes routinely and instantly impacts the overheads of businesses which hire at the minimum wage rate.
Trade tariffs
Tarrifs are charges that national governments apply to imported goods. Tarrifs increase the prices of imported goods. This makes the prices of domestically produced goods more attractive. They are introdiuced as a means of protecting the viability of domestic businesses.