Greater Birmingham business leaders react to Autumn Budget

Chamber members have been reacting to the Autumn Budget set out by Chancellor Rachel Reeves yesterday.

The key announcements of the Budget were continuing the income tax threshold freeze until April 2031, removing the two-child benefit cap, an electric vehicle excise duty and free apprenticeship training for under 25s.

Here 's what some Greater Birmingham businesses had to say:

Steve Whitmarsh, chief executive of Multifleet, which trades as runyourfleet on the introduction of pay per mile scheme;

“The introduction of pay per mile charging for EVs will not only hit the transition to new EVs by increasing the operating costs, it will also hit the used EV market.

“The used EV market is already struggling, with values of three-year-old EVs falling by over 50 per cent in the last 3 years.

“With the benefits of EV ownership being reduced further with the introduction of pay per mile, there will be even slower take up of used EVs by consumers.

“This could increase deflationary pressure on used EVs which will, in turn, increase the cost of ownership for new EV’s either through ownership or leasing.

“While there is disappointment that a £2,000 salary sacrifice cap has been introduced on pensions, putting further pressure on employers and employees alike, there is relief that there are no changes announced for salary sacrifice car schemes.

“This means that salary sacrifice car schemes are safe and still highly attractive, with long term certainty until 2030.”

Gary Davison, managing director of Davisons Law on the impact to landowners

“For most home-movers, the big taxes on buying and selling - stamp duty and capital gains - are untouched for now.

“The real headline today is an annual surcharge on £2m+ homes and higher tax on property income, which will squeeze high-end and buy-to-let investors more than the average buyer.

“This new annual charge represents an effective mansion tax by another name.

“High-net-worth clients, particularly those with properties in prime London locations or holding second homes, will need to carefully consider their ownership structures and longer-term planning.

“We're already fielding questions about inter-generational planning and whether it makes sense to downsize ahead of 2028.

“Combined with the increasingly onerous regulations landlords already face, we expect to see tax-driven disposals and more landlords reshaping their portfolios or exiting the market entirely.

“We anticipate significantly more queries about incorporation, joint ownership structures, and transferring properties within families to mitigate the tax burden."

“Whilst the average home-mover won't see immediate changes to their stamp duty bills, those at the higher end of the market and property investors need to start planning now for what's coming in 2028 and the immediate impact of higher income tax rates on their rental returns.”

Kate Moon, Jerroms tax director on the income tax freeze and national insurance thresholds;

“Not surprising, but disappointing nonetheless to see a further freeze on Income Tax and National Insurance thresholds until 2031.

“Increased costs of living result in higher earnings and not increasing these thresholds year on year increases the overall tax exposure to most UK households – with an estimated 1 million more taxpayers falling into the higher rate tax bracket.

“The national insurance threshold freeze is not good news for small businesses when combined with the national minimum wage increase planned for April 2026.”

Phil Jelley, pensions partner at Gateley Legal

“The Government’s announcement of plans to cap the amount of pension contributions made via a salary sacrifice scheme will come as a disappointment to employees in the private sector across the UK.

“The scheme, where employees benefit from the National Insurance savings, has been capped at £2000 per annum from April 2029, which will result in the reduced pensions savings for employees, at a time when it is widely acknowledged that workers in the UK are under saving for their retirement.

“The introduction of the £2000 cap on pension contributions will lead to smaller pension pots for future retirees, meaning they will likely have a greater reliance on the state in retirement, which will place a greater strain on future generations who will inevitably need to fund that support.

“Following this change, against the backdrop of a struggling economy, employers will also seek to reduce their pension costs, resulting in reduced pension pots as well as potential reductions in pay increases and headcount.”

Johnathan Dudley, Head of Manufacturing at Crowe UK

“The Investment Income Surcharge, adding 2 per cent tax to unearned income such as rents and dividends, was abolished by Margaret Thatcher. Now it’s back, and I doubt it will stay at 2 per cent.

“I have to say, I’ve been expecting its return since Rachel Reeves’ first speech as Chancellor in July 2024.

“And the introduction of fully-funded apprenticeships of under-25 year-olds for SMEs has echoes of the old Youth Opportunity Scheme (YOPS). There were definite echoes of the Seventies.”

John Webber head of business rates at Colliers;

“The Chancellor’s announcements today concerning business rates constitute a dismal day for UK PLC and the High Street.

“Together with rises anticipated in the 2026 Revaluation, matters have been made even more costly for businesses, who overall will be facing higher business rates bills next April as business rates set to rise from £33.6 billion to £37.1 billion- a 10.2 per cent increase.

This is despite pre-election promises of business rates reform and ‘saving the high street’.

“Whilst we are pleased to see that the cap on support for RHL operators has now been removed (previously £110,000 per business) we are concerned that the discount on the smaller multiplier is only 5p which is limited and may not offset the loss of reliefs these smaller shops and restaurants received previously, particularly if their RV rise as anticipated in the 2026 Revaluation”

 “We are also disappointed that the government has continued with its plan that the funding for this reduction will be achieved by increasing the multiplier for larger properties—those with RVs of £500,000 and above—across all sectors.

“This will impact offices, large industrial and manufacturing units and larger retail sites among others- putting millions on their bills.”

Andrew Goodacre, CEO of the British Independent Retailers Association on closure of the low-value import duty loophole;

“Why wait four years when the USA closed their loophole in six months and Europe is doing the same next year?

"Four years is an extraordinary amount of time.

“We're being told to live with unfair competition from overseas sellers dodging duties, VAT and safety standards while our members play by the rules and pay their taxes. We could learn from other countries who've acted far more quickly."

"This was supposed to be about levelling the playing field.

"Instead, we've got another four years of being undermined by cheap and often unsafe imports while the government drags its feet."

Ann Tonks, director at Chapter restaurant on hospitality:

“This Budget demonstrates the government has absolutely no idea how to encourage economic growth.

“The announcements today pile more taxation on top of business and are a huge missed opportunity to kickstart consumer buoyancy and confidence.

“The rise yet again of the national minimum wage by +4.1% (and +8.5% for those aged 18 to 20 years) increases significantly a business’s wage bill, NICs and pension contributions. This acutely affects labour- intensive, small-margin businesses.

“More jobs will be sacrificed.

“While ’permanently lower’ business rates taxation has been announced for small businesses, we have no detail about what that looks like and who ultimately benefits.

“The levels of taxation are eye watering and they leave small businesses reeling.

“Our hospitality sector is on a knife edge, and this Chancellor clearly doesn’t understand our contribution to the community and the economy.

“As a key employer, cultural asset and heartbeat of the high street, we can be a source of inclusive, sustainable growth – but we must survive!”

Will Dowsett, tax partner for PwC in the Midlands;

“The fact that this Budget – and the months of speculation that preceded it – is now out of the way will be a relief for businesses in the West Midlands; they now have greater certainty on the cost of employing their people in the longer term. 

“Employment costs are already putting pressure on the bottom line for many businesses, given the rise in National Insurance announced last year and a background of economic headwinds and increased costs. 

“The rise in minimum wage, and the restriction of the NI-free threshold on salary sacrifice pensions, will put businesses under new cost pressures, especially smaller businesses with lower margins and stretched resources.

“They have until 2029 to manage the implementation of the restricted NI relief, but employers who don’t begin planning early risk being caught out. 

“However, the expansion of the Enterprise Management Incentive “EMI” scheme will encourage many private businesses to award share options to their staff, with a beneficial tax impact for both the individual and the employer."