The latest Autumn Budget was delivered against a backdrop of economic strain, rising household costs and the ongoing challenge of rebuilding confidence in the UK economy.
The Chancellor emphasised fairness and a sense of shared responsibility for lifting the nation out this economic quagmire, setting out plans intended to protect public services and reduce the national deficit.
Yet for many businesses, the message was clear – they will shoulder a disproportionate share of the burden.
For Graham Lamont, chief executive of Lamont Pridmore, this Budget raises serious concerns about the direction of economic policy.
“The Government talks about stability and long-term growth, but its choices place extra pressure on businesses and their owners who are already battling higher costs, tighter margins and weaker demand,” he says.
“Instead of encouraging investment, this Budget risks pulling the handbrake on growth.”
Stealth taxes hit individuals, but businesses feel the consequences
The most significant announcement is the decision to extend the freeze on personal tax thresholds to April 2031.
Although positioned as a measure of fairness, the impact will be felt across the workforce, drawing nearly a million more people into paying tax and pushing many into higher bands through fiscal drag.
For employers, the effect is indirect but substantial. As employees face higher tax bills, wage pressure rises. Staff begin to expect higher pay simply to stand still, not to get ahead.
Graham believes this will have a strong knock-on effect.
He says: “Businesses are being pushed to absorb higher employment costs at the same time as the National Living and National Minimum Wage are increased.
“That combination will stretch many employers to breaking point.”
Higher employment costs but limited support
Indeed, April 2026 will see further increases to headline wage rates, including a rise in the National Living Wage to £12.71 per hour.
For labour-intensive sectors, such as tourism and hospitality, this is a sharp escalation in overheads without any matching support to drive productivity or offset the cost.
On business taxation, changes appear modest on the surface but offer little comfort.
The reduction in the writing down allowance from 18 to 14 per cent narrows the tax relief available on capital assets, although a temporary first-year allowance of 40 per cent has been introduced.
Capital Gains Tax relief on Employee Ownership Trusts is being halved, reducing incentives for business owners planning succession through employee ownership.
“These are not measures that stimulate growth,” Graham says. “They may collect more tax for the Treasury, but they do nothing to encourage the investment and innovation that create jobs, drive productivity and support local economies like ours across Cumbria and Lancashire.”
While the scrapping of the two-child benefit cap for Universal Credit and Child Tax Credit has been largely welcomed for helping to lift 450,000 children out of poverty by 2029-30, the Government has acknowledged it will cost £3 billion a year.
Graham believes businesses are bearing the brunt of the financial burden.
“Increased wage bills and tax rises mean many businesses will be forced to manage with fewer staff, which in turn will severely hamper business growth, productivity and employment opportunities.
“Many employers, including ourselves, would like to see more help for working age parents to work or work more hours, including making childcare more affordable and accessible, improving public transport and ensuring the potential loss of benefits aren’t another barrier to employment.”
A Budget short on ambition for business
The Government has invested heavily in regional infrastructure, local growth funds and targeted development schemes, but these long-term programmes do little to ease the immediate cost pressures businesses face today.
With GDP forecasts downgraded from 2026 onwards, many local firms will feel overlooked at a time when stability, confidence and incentives for expansion should be the priority.
Graham puts it bluntly: “This Budget asks businesses to do more of the heavy lifting while receiving very little in return.
“Growth will not come from taxing success or increasing labour costs. It comes from creating an environment where businesses and the risk takers are supported to thrive.”
Now more than ever, businesses need proactive advice
With tax rises stretching ahead and reliefs becoming tighter, careful planning is essential.
The increasing complexity of the tax system, combined with rising employment costs, makes forward-looking advice more important than ever.
Graham adds: “Businesses cannot afford to wait and see what happens next.
“They need a strategy and they need trusted advisers who understand both the challenges and the limited opportunities this Budget creates.”
If you are concerned about the growth of your business or how your own personal wealth has been affected by the Chancellor’s latest speech, please get in touch with Lamont Pridmore by visiting www.lamontpridmore.co.uk
