'The level of rumours has been unsettling': West Midlands business leaders share autumn Budget hopes, fears and predictions
The UK could face a raft of changes across all areas if no headline taxes are raised in Wednesday’s Budget, according to tax specialists at national audit, tax, advisory and consulting firm Crowe UK.
Senior leaders and business chiefs have been airing their views, thoughts and fears ahead of the autumn Budget on Wednesday (November 26) at which Chancellor Rachel Reeves is widely expected to put up taxes as Labour prioritises its investment plans which include building thousands of new homes and transforming the NHS.
As the Chancellor looks to balance the books while the country deals with a host of complex issues, including the fallout from US tariffs and the cost of living crisis, tax changes mooted include increases to Inheritance Tax and Capital Gains Tax, possible changes to tax relief on pensions and changes to the Cash ISA scheme.
Meanwhile, many businesses are still struggling from the impact of increased employer National Insurance contributions and the rise in the National Minimum Wage, both of which came into effect in April after the last Budget, as well as factors like higher energy bills.
Here's what business leaders across the region have had to say with the Budget now almost upon us.
Rob Gunn - tax specialist
Rob Gunn is a tax partner at the Birmingham and Oldbury offices of national audit, tax, advisory and consulting firm Crowe UK.
The UK could face a raft of changes across all areas if no headline taxes are raised in Wednesday’s Budget, according to Mr Gunn.
He said: “The level of rumours has been unsettling for many and while I don’t envy any Chancellor their job, particularly in the current circumstances, the ‘soft consultation’ process arguably should have been handled better.”
He said it was previously long-standing practice that before Budgets and general elections, the UK entered a period of “purdah” in which potential changes were not discussed by the Government or civil servants across Whitehall.
He said: “Floating the idea of income tax rises with the political flak that was always going to follow this suggests that, at one point, there was a big hole to fill.
“If the major taxes are now not going to rise, then my fear is that there will be a lot of changes to make up the difference. Lots of change following lots of uncertainty is not a good combination.
“Given that no-one really knows what is coming, taking actions purely on the basis of rumour could be dangerous.”
Changes in the offing could include an increase to taxes on dividends, increases in Inheritance Tax and Capital Gains Tax, changes to tax relief on pensions and the amount of tax free lump sum people accessing their pensions can take.
He’s also querying whether we’ll see duties for cigarettes and alcohol rising and an increase in fuel duty, adding: “Filling up on Budget day morning used to be a tradition – one it may be worth revisiting this year.”
Crowe is hosting a live event at Black Country House, Rounds Green Road, Oldbury, on Budget Day. For more information visit crowe.com/uk/events.
Adam Smith - consultancy business MD
Adam Smith, from Kidderminster, is the managing director of Worcestershire-based Inspiring Group, a UK-based consulting and interim business, offering services focused on business transformation from procurement strategy to leadership development.
He said when asked what is on his wish list for the Budget he hoped for an autumn statement that includes policies like "attracting and retaining the brightest people, providing government grants for technology investment, not punishing entrepreneurs that take risks with high taxes, reducing tariffs and delays at customs, making work more attractive than not working and generally just being more positive."
He told the Express & Star: "Our clients have similar requests in that they want the Government to make the UK a dynamic and attractive place for private businesses.
"A couple of our clients are in aerospace and that sector is very busy globally. The UK has a good reputation for supporting the aerospace sector but is acutely aware that countries like India are attracting a lot of investment from the big boys in aerospace (Boeing, Airbus, and Rolls-Royce for example).
"Therefore, we need the UK Government to make the UK attractive for continued investment but this is complex to achieve."
Neil Lloyd - solicitor
