It might feel like there’s plenty of time before 2027 arrives, but for managers, now is a good time to start thinking about what the new year could bring.

Budget planning isn’t just about deciding how much money your team can spend. It’s about understanding what your organisation needs to achieve, what your people need to deliver it, and what external factors could influence those plans.

And, as we all know, some of those factors are outside our control.

The UK Government’s Budget, for example, can have a knock-on effect for businesses. Changes to taxation, National Insurance, employment costs, minimum wage rates or business support can all influence financial decisions. Add in inflation, energy prices, economic uncertainty and changes in customer behaviour, and suddenly that carefully prepared budget may need a rethink.

Build some flexibility into your plans

Good managers know that a budget shouldn’t be set in stone. While you need clear targets and controls, it’s also worth considering what could happen if circumstances change.

Could you identify a small contingency for unexpected costs? Are there projects that could be brought forward, delayed or scaled back depending on business performance? And are you regularly reviewing the assumptions behind your budget rather than simply working to last year’s numbers?

Don’t forget your people

Budget planning should also consider the cost of recruiting, retaining and developing your team. Salaries are only one part of the picture. Training, wellbeing initiatives, technology, flexible working and employee benefits can all play an important role in helping people perform at their best.

The challenge for managers is balancing financial responsibility with investing in the things that help the organisation succeed.

So, as you look towards 2027, don’t just ask “What’s our budget?” Ask “What might change, what could we need, and how can we be ready?”

Because good budget planning isn’t about predicting the future perfectly. It’s about giving your team the best possible chance of responding when the future inevitably changes.


PS - If you are keen for some individual wellbeing tips to complement this Working Well life, check our Being Yourself Series with Make Me A Plan's Performance Planner, Gemma Mullinger. You can read the latest edition here: DISCIPLINE - Make Me A Plan