What does the 2025 Autumn Budget mean for Greater Birmingham businesses? 

By Ruth Fleet and Paige Bowyer, GBCC Policy team

What is the Autumn Budget? 

On 26th November 2025, the Chancellor of the Exchequer, Rachel Reeves, presented the Autumn Budget to the House of Commons. It reviews the UK’s economy and sets out the Government’s fiscal policy for the year. 

Public Finances 

The Chancellor maintained that the 2025 Autumn Budget would meet the two fiscal rules set by the Office for Budgetary Responsibility (OBR):  

• Stability: The current Budget should put the Government on course to be in balance or surplus, with the Government only borrowing to invest money and meeting all day-to-day spending from tax revenues.  

• Investment rule: net financial debt should reduce as a proportion of the economy.  

The Chancellor stated that, according to OBR forecasts, public borrowing should drop from 3.5 percent of GDP in 2026/27 to 1.9 percent by 2029/30. If the estimates are correct, this means that the Government should meet its stability rule in 2029/30 by £21.7 billion – a year early - and its investment rule by £24.4 billion on target. The previous Budget allowed headroom of only £9.9 billion, demonstrating the increased levels of taxation from this Budget.  

The Chancellor also stated that going forward the Government will follow the recommendation made by the OBR to only assess the fiscal rules once a year at the Budget.  

OBR Forecasts 

The OBR has revised growth upwards for the year, from 1 percent to 1.5 percent. The forecast predicts that GDP growth will dip in 2026 to 1.4 percent before returning to 1.5 percent in subsequent years. The revision this year brings the OBR in line with the predictions from the International Monetary Fund (IMF), the Organisation for Economic Co-operation and Development (OECD), and the Bank of England.   

The Consumer Price Index inflation is forecast to drop from 3.5 percent in 2025 to 2.5 percent in 2026. The OBR believes that in 2027 the Government’s Budget will allow them to meet its 2 percent inflation target.  

The OBR has downgraded its productivity forecast (measured as output per hour) from 1.3 percent to 1.0 percent for the medium term. The OBR states that this is an ongoing consequence of the UK’s slowdown since the Global Financial Crash. The Government’s plan to address this is in public investment to boost existing private investment by maintaining the £120 billion of infrastructural investment already announced, such as large-scale infrastructure projects in transport, energy and housing.  

Public Sector Spending 

Devolution via Strategic Authorities  

The Chancellor maintained her commitment to the already announced £13 billion of support for Mayoral Strategic Authorities (MSAs) for funding skills, business support and infrastructure projects. Funding that will come to the region via the West Midlands Combined Authority includes:  

• £1.3 billion across Combined Authorities for housing via the National Housing Delivery Fund.  

• Fiscal devolution to allow for a visitor levy on overnight visitor accommodation to Mayoral Strategic Authorities (MSA).  

• Allocation of £150 million Creative Places Growth Fund for devolved regional Governments with £25 million going to each MSA.  

• The Government will provide a share of the £500 million Mayoral Revolving Growth Fund to MSAs, a strategic investment partnership designed to overcome finance barriers, accelerate investment, unlock development and boost growth.   

• MSAs will also benefit from the Local Growth Fund, £902 million over four years to invest in local infrastructure, business, and employment support and skills programmes.  

Schools  

The Government announced or maintained its commitment to a number of smaller policies around schools, including:  

• £5 million of new funding to state secondary schools for books.  

• The expansion of the free school meals programme and an extension of free breakfast clubs to 2,000 more school nationally, at a cost of £410 million and £80 million respectively.   

• Limiting branded uniform items to lower the cost of buying uniforms.  

• Creating more childcare places by expanding the development of school-based nurseries; the Government states that the previous £400 million of investment created over 5,000 additional places.  

• No further changes were made to the introduction of VAT on private school fees from the Budget last year.  

NHS  

The Government has announced plans for 250 new Neighbourhood Health Centres, of which it plans that 120 should be operational by 2030 via a £300 million capital investment. Birmingham was named as one of the places that will benefit from this project in the Budget. This funding will also support an increase in technology budgets with the aim of supporting NHS productivity. The Chancellor also announced that the government will maintain the freeze on NHS prescription charges in England from 1st April 2026.  

Digital ID  

The Government re-confirmed plans to invest in a national Digital ID scheme with the intention that it will make it easier for citizens to access services and to combat illegal working.   

Transport Fares  

The Government has announced that it will freeze all regulated rail fares in England for one year from March 2026, building on the previous decision to extend the £3 bus cap to March 2027.  

Public Sector Cuts 

The Chancellor repeated the commitment that there will be no return to austerity under this Government.  

Police and Crime Commissioners  

The Chancellor repeated a previous announcement that Police and Crime Commissioners will be abolished. In combination with reducing councillors via Local Government Reorganisation (LGR), the Government anticipates that this will save £250 million over five years.  

NHS Efficiencies  

The Government previously announced that it will abolish NHS England and other arm’s length bodies to reduce bureaucracy and duplication, at an estimated saving of £1 billion by the end of the Parliament.  

Selling Assets  

The Budget included a proposal for a Strategic Asset Review, aiming to achieve £1 billion of efficiencies and a value-for-money review by the next spending review in 2027.  

Corporation Tax 

The Autumn Budget confirms that the Government will maintain the main Corporation Tax rate at 25 per cent, in line with the Corporate Tax Roadmap. The Government emphasises stability in maintaining the core features of the UK’s Corporation Tax system, including the full expensing regime for plant and machinery.  

To continue supporting business investment, the Government intend introduce a new 40 per cent First-Year Allowance for main-rate assets from 1 January 2026, ensuring companies can secure accelerated relief upfront. Alongside this, the main Writing-Down Allowance rate will be reduced from 18 per cent to 14 per cent from April 2026. Cars, second-hand assets and assets for leasing overseas will not qualify for the 40 per cent allowance.  

The Budget also stated reforms to Capital Gains Tax. Relief on qualifying disposals to Employee Ownership Trusts will be reduced from 100 per cent to 50 per cent from 26 November 2025, and the Government will strengthen anti-avoidance rules related to share exchanges, reorganisations and non-resident capital gains.  

Finally, the Budget stated that the Government has published a Call for Evidence on how to ensure tax support for high-growth companies remains founder-friendly, inviting views on the effectiveness of existing tax incentives within the entrepreneurial ecosystem.  

Business Rates 

The Chancellor set out a major package of reforms to business rates in England. From April 2026, the small business multiplier will fall from 49.9p to 43.2p, and the standard multiplier will decrease from 55.5p to 48p, reflecting updated property valuations.  

Aiming to support the high street, the Government are planning to introduce permanently lower business rates multipliers for the retail, hospitality and leisure sectors. From 2026/27, eligible RHL properties with rateable values below £500,000 will benefit from rates 5p below national multipliers, setting the small business RHL multiplier at 38.2p and the standard RHL multiplier at 43p. The Government estimates this support is worth nearly £900 million annually.  

To fund this sustainably, a new high-value business rates multiplier will apply to properties with rateable values of £500,000 and above, set at 50.8p in 2026/27, 2.8p above the national standard multiplier. The Government estimates this will apply to roughly 1 per cent of properties.  

A substantial £4.3 billion support package over three years will help businesses manage changes from the 2026 revaluation. This includes a redesigned Transitional Relief scheme worth £3.2 billion, a Supporting Small Business scheme, and additional support for businesses transitioning from RHL relief.  

The Budget also launches a Call for Evidence on the role business rates play in investment decisions, including concerns surrounding the Receipts and Expenditure valuation method.  

Customs Duty and Online Retail 

To ensure fair competition between high-street retailers and online sellers, the Government aim to abolish customs duty relief for low-value imports (valued at £135 or less). From March 2029 at the latest, these parcels will be subject to customs duty, and new import processes will be implemented following technical consultation.  

Transport and Platform Economy Taxation 

The Government stated plans in the Budget exclude Private Hire Vehicle services, including app-based operators such as Uber and Bolt, from the Tour Operators’ Margin Scheme from 2 January 2026, altering the VAT treatment of these services. 

The Chancellor also announced a series of measures concerning electric vehicles in the Budget. These included the introduction of a new Electric Vehicle Excise Duty (eVED), a mileage charge for electric and plug-in hybrid cars, with effect from April 2028. Drivers will pay for their mileage on a per-mile basis alongside their existing Vehicle Excise Duty. Electric cars will pay half the equivalent fuel duty rate for petrol and diesel cars, and plug-in hybrid cars will pay a reduced rate equivalent to half of the electric car rate. The Government has published a consultation (open until 18th March 2026) which provides further detail on how this eVED would work and is seeking views on its implementation.  

Separately, the Government has committed to allocating £100 million to local authorities and public bodies to accelerate installation of electric vehicle charge points, and to invest an extra £100 million in EV charging infrastructure. 

Further, the Budget stated plans to introduce a 10-year 100% business rates relief for electric vehicle charging points separately assessed by the Valuation Office Agency and electric vehicle only forecourts to ensure that they face no business rates liability. 

At Autumn Budget 2024, the Government announced it would bring employee car ownership schemes (ECOS) into scope of the Benefit in Kind rules from 6th April 2026. To allow more time for the sector to prepare for and adapt to this change in treatment, its implementation will be delayed to 6th April 2030, with transitional arrangements until April 2031.  

The Budget stated that the Government will extend the 100% first year allowances (FYA) for qualifying expenditure on zero emission cars and the 100% FYA for qualifying expenditure on plant or machinery for electric vehicle (EV) charge points for a further year. The FYA will now be in place until 31st March 2027 for corporation tax purposes, and 5th April 2027 for income tax purposes. 

Landfill Tax Measures 

The Government stated a series of landfill-related measures. From 1 April 2026, the standard Landfill Tax rate will increase by RPI, and the lower rate will rise by the equivalent cash amount, maintaining the differential between rates.  

Following consultation, the Government don’t intend to proceed with merging landfill tax into a single rate by 2030 and will retain the exemption for quarries with disposal permits.  

To support development where landfill tax costs are prohibitive, DEFRA plan fund a Land Remediation Grant, increasing land available for housebuilding and other uses.  

Licensing and High Street Regulation 

The Budget introduces the UK’s first National Licensing Policy Framework, requiring licensing authorities in England and Wales to consider economic growth when making decisions, addressing concerns from the hospitality sector. The Government also plan to explore further planning reforms to help high street and hospitality businesses expand.  

Soft Drinks Industry Levy 

In line with the uprating strategy announced at Autumn Budget 2024, the Soft Drinks Industry Levy (SDIL) will be uprated on 1st April 2026 in line with Consumer Price Index plus one fifth of the ‘catch-up’ increment to reflect the 27% CPI increase between 2018 and 2024. 

This Autumn Budget also stated that the Government will reduce the threshold at which the SDIL applies from 5g to 4.5g sugar per 100ml and remove the exemptions for milk-based and milk substitute drinks with added sugar. These reforms will be implemented on 1st January 2028. Open cup beverages, such as those bought in cafes, will remain unaffected. 

Energy and Fuel  

The Government set out a broad package of energy measures focused on reducing costs for households and businesses, accelerating clean energy deployment, and reforming regulatory frameworks to support long-term energy security.  

Network Charging Compensation Scheme 

To support manufacturing and energy-intensive industries, the Budget confirms further enhancements to the British Industry Supercharger, increasing relief in the Network Charging Compensation Scheme from 60 per cent to 90 per cent. From 2027, the new British Industrial Competitiveness Scheme will begin reducing electricity costs by £35–40/MWh for energy-intensive sectors such as automotive, aerospace, chemicals and wider foundation industries. A consultation has been launched to refine the design of this scheme and determine eligibility criteria.  

Reducing Household Energy Bills 

The Chancellor announced a series of measures aimed at bringing down household energy bills. From April 2026, the Government aim to remove around £150 from the average household bill by funding 75 per cent of the domestic share of the Renewables Obligation and ending the Energy Company Obligation (ECO), which is currently paid for through energy bills. These measures are predicted to reduce inflation by 0.2 percentage points in 2026–27. Alongside this, the Warm Home Discount has been expanded so that 6 million households will receive £150 off their bills this winter, and an additional £1.5 billion will be provided through the Warm Homes Plan to support fuel-poor households.  

Fuel Duty 

On fuel costs, the Government confirmed that the temporary 5p cut to fuel duty will be extended until August 2026. Duty rates will then return to pre-March 2022 levels in three stages between September 2026 and March 2027, with the planned inflation increase for 2026–27 cancelled.  

Investment in Nuclear Power 

Within the wider clean energy transition, the Government placed significant emphasis on nuclear power as central to long-term energy security. The Budget announced that Wylfa will host the UK’s first Small Modular Reactor (SMR) project, set to support up to 3,000 jobs, while continued progress on large-scale nuclear includes financial close on Sizewell C, enabling full construction to begin. The Government is also planning to expand investment in fusion research. To help accelerate deployment, ministers have accepted all recommendations of the Fingleton Review on nuclear regulation and plan to implement reforms over the next two years, including the work of a new Nuclear Strategic Steer to deliver more proportionate and efficient regulation. The Office for Nuclear Regulation are to be given a strengthened mandate to consider national security and energy strategy within its statutory functions, and nuclear generation will now be eligible for financing through the Green Financing Framework.  

Renewable Energies and the Grid 

The Budget also contains measures to support renewables and modernise the electricity grid. Through the Planning and Infrastructure Bill, the Government plan to introduce powers to reallocate grid capacity and reserve connections for nationally significant projects. Ofgem are working with Government to reform grid queue processes, strengthen entry requirements, and expand flexible and self-build connection arrangements to speed up “time to power”. Investments through the National Wealth Fund include a £600 million loan to Scottish Power to accelerate seven transmission upgrades needed to bring more renewable generation onto the system. The approval of the Forth Green Freeport is predicted to leverage £7.9 billion of investment and generate 16,000 jobs, with a strong focus on renewable energy and sustainable fuels. 

Measures on Alcohol, Tobacco, Vaping and Gambling 

It was stated in the Budget that duty rates on all tobacco products will increase by RPI inflation +2 percentage points from 6pm on 26 November 2025. A one-off increase of £2.20 per 100 cigarettes or 50g of other tobacco products and annual uprating of tobacco duty by RPI + 2 percentage points next year will take effect from 1 October 2026. 

From 1 February 2026, all Alcohol Duty rates will be increased in line with RPI inflation. The Small Producer Relief discounts will also be uprated, so eligible small producers continue to receive relative duty reductions. 

The Chancellor also announced that the Government will look to introduce a new licensing scheme for retailers to sell tobacco and vape products, to tackle retailers breaching tobacco and vape regulations. It was stated that the Government is also legislating to introduce a Vaping Duty Stamps scheme from 1 October 2026, which will require all vaping products manufactured or imported into the UK to have a duty stamp on packaging. 

Following consultation feedback earlier this year on proposals for a new single remote betting and gaming duty, the Government has announced that it will not be proceeding with this proposal and will instead raise duties on online gambling, with a larger increase on gaming. The Remote Gaming Duty will increase from 21% to 40% from April 2026. A new Remote Betting Rate at 25% within General Betting Duty will be introduced from April 2027, maintaining a clear differential in the tax rates for these two activities. Duty on remote horserace betting will remain at 15%. Bingo Duty will be abolished from April 2026.  

It is anticipated that an additional £26 million of funding will be provided to the Gambling Commission over the next three years to tackle the illicit gambling market. 

Personal Taxation 

Income Tax and National Insurance 

The Chancellor announced that the Government will maintain the income tax Personal Allowance at £12,570 and higher rate threshold at £50,270 from April 2028 to April 2031. The additional rate threshold will remain at £125,140 from April 2028 to April 2031.  

Likewise, the Government set out plans to maintain National Insurance Contributions thresholds for employees and the self-employed from April 2028 until April 2031. 

The Government will increase the National Insurance Lower Earnings Limit (LEL) and the Small Profits Threshold (SPT) by the September 2025 CPI rate of 3.8% from 2026-27. For those paying voluntarily, the Government will also increase Class 2 and Class 3 NICs rates by September’s CPI rate. 

From 6 April 2026, the Chancellor announced that the Government will remove access to pay voluntary Class 2 NICs abroad and increase the initial residency or contributions requirement to pay voluntary NICs outside of the UK to 10 years. The Government will also launch a wider review of voluntary NICs with a call for evidence in the new year. 

Student Loans 

The repayment threshold for Plan 2 student loans will be additionally frozen at £29,385 for three years from April 2027. 

Taxes on property, dividends and savings income 

The Chancellor announced plans to change the rates of income tax applicable to dividends and savings income, and to establish separate tax rates for property income. 

From 2026-27, the ordinary rate of income tax applicable to dividend income will be increased by 2 percentage points to 10.75% and the upper rate will be increased by 2 percentage points to 35.75%. The additional rate will remain unchanged at 39.35%. This will take effect from 6 April 2026. 

From 2027-28, the savings basic rate will be increased by 2 percentage points to 22%, the savings higher rate will be increased by 2 percentage points to 42% and the savings additional rate will be increased by 2 percentage points to 47%. This will take effect from 6th April 2027. 

From 2027-28, the new basic rate for property income will be 22%, the property higher rate will be 42%, and the property additional rate will be 47%. 

The Government is also planning to change income tax rules so that reliefs and allowances deductible at steps 2 and 3 of the income tax calculation will only be applied to property, savings and dividend income after they have been applied to other sources of income. 

Pensions 

From 6th April 2029, it was announced that the Government will charge employer and employee NICs on pension contributions above £2,000 per annum made via salary sacrifice. 

It was announced in the budget that the Government will increase the basic and new State Pension by 4.8 percent from April 2026, maintaining the Triple Lock. The Chancellor also announced that the Government will release the £2.3 billion in the Investment Reserve Fund in the British Coal Staff Superannuation Scheme to the scheme’s Trustees. This will be paid out as an additional pension to members of the scheme.  

Residential Property Taxes 

The Chancellor also outlined the Government’s intention to introduce a new, High Value Council Tax Surcharge on owners of residential property in England worth £2 million or more, starting in 2028-29. It is anticipated that local authorities will collect this revenue on behalf of central Government, with revenue earmarked to support funding for local Government services. 

Inheritance Tax 

The inheritance tax nil-rate bands are already set at current levels until April 2030, and it was announced that these will stay fixed at these levels for a further year until April 2031. The forthcoming combined allowance for the 100% rate of agricultural property relief and business property relief will also be fixed at £1 million for a further year until 5 April 2031. 

Non-resident taxes 

The Budget announced that the Government will abolish the dividend tax credit for non-UK residents with UK income, aligning their treatment with UK residents. This will take effect from 6th April 2026. 

Air Passenger Duty 

The Budget confirmed that the Government will uprate all rates of Air Passenger Duty in line with the Retail Price Index (RPI) from 1st April 2027. 

At the 2024 Autumn Budget, the Government announced plans to extend the higher Air Passenger Duty rate to private jets over 5.7 tonnes. Following consultation, the Government will proceed with this change. 

Tax Enforcement and Tackling Unpaid Tax 

The Government set out a significant package of measures aimed at strengthening HMRC’s ability to recover unpaid tax, tackle tax avoidance and evasion, and improve compliance across the economy. The Budget states HMRC’s debt management function will be modernised through new legislation, with the intention of enabling the department to recover tax more effectively from individuals and businesses and ensuring that outstanding liabilities are pursued more quickly and consistently.  

To reinforce the UK's anti-avoidance framework, the Government announced reforms to the General Anti-Abuse Rule (GAAR) penalty regime, aligning it with broader compliance penalties and enhancing HMRC’s capacity to deter abusive tax arrangements. This is complemented by a series of targeted anti-avoidance measures, including modernised rules for share exchanges and company reorganisations, and reforms to the non-resident Capital Gains Tax regime to close avoidance opportunities linked to Protected Cell Companies and clarify legislation for overseas investors.  

The Government also plan to legislate to strengthen the Disclosure of Tax Avoidance Schemes (DOTAS), updating hallmarks and penalties for promoters to ensure HMRC can identify, investigate and shut down avoidance schemes more rapidly. Additionally, large multinational businesses will face updated transfer pricing documentation requirements, mandating Master File and Local File reporting to provide HMRC with greater transparency on profit allocation.  

As part of a broader push to tackle hidden non-compliance, the Government will introduce new powers targeting the umbrella company market, addressing issues such as false self-employment, mini-umbrella fraud, and disguised remuneration schemes. HMRC will also gain expanded data-gathering powers, including requirements for taxpayers to provide information on company car usage, helping to address incorrect benefit-in-kind reporting.  

To strengthen tax transparency in emerging sectors, the Budget confirms that the UK will legislate to implement the Crypto-Asset Reporting Framework (CARF), giving HMRC enhanced access to data on crypto asset transactions. This is expected to improve the detection of undeclared gains and ensure alignment with international reporting standards.  

The Government also intend to modernise aspects of tax collection by updating stamp taxes processes, improving reporting systems and reducing opportunities for non-compliance in transactions involving shares and securities.  

In addition, the intended abolition of low-value import relief for parcels worth £135 or less, set to take effect no later than March 2029, will close a long-standing loophole used by overseas sellers to avoid customs duty, levelling the playing field for UK retailers and strengthening border-level compliance. 

People and Skills 

Some of the key announcements in the Budget concerned increases to national minimum and living wages. 

As recommended by the Low Pay Commission, from 1st April 2026, the National Living Wage will increase by 4.1% to £12.71 per hour. The National Minimum Wage for 18-20 year olds will also increase by 8.5% to £10.85 per hour and for 16-17 year olds and apprentices by 6.0% to £8.00 per hour. The accommodation offset will increase by 4.1% to £11.10 per day. 

The Chancellor also announced at the Budget that the two-child limit in the Universal Credit Child Element will be removed from April 2026. The maximum amount that can be reimbursed for childcare costs for eligible Universal Credit claimants will increase by £736.06 for each additional child above the current maximum cap for two children. 

Further to these announcements, the Budget restated many previous announcements made in regard to investment in employment support for disabled people and those with health conditions.  

It was stated that Work Capability Assessment (WCA) reassessment capacity will be increased, extending Personal Independence Payment award reviews periods and increasing face-to-face health assessments. 

The Budget also additionally stated that Carer’s Allowance overpayments which were the result of incorrect operational guidance will be reassessed, as recommended by the Independent Review into Carer’s Allowance Overpayments. The Department for Work and Pensions is expected to cancel existing debts or return previously collected debts to affected carers. 

It was also announced in the Budget that from July 2026, vehicles leased through the Motability Scheme, or through any equivalent qualifying schemes, will be subject to 20% VAT on top-up payments which are made in addition to the transfer of eligible welfare payments for more expensive vehicles on the scheme. Insurance Premium Tax will also be applied at the standard rate of 12% for insurance related to vehicles leased through the scheme. Tax changes will not apply to vehicles designed for, or substantially and permanently adapted for, wheelchair or stretcher users. 

It was emphasised that the Government is making more than £1.5 billion available over the Spending Review period for investment in employment and skills support. This is expected to fund £820 million for the Youth Guarantee, which includes offering a guaranteed six-month paid work placement for eligible 18-to 21 year olds who have been on Universal Credit and looking for work for 18 months. This also includes £725 million for the Growth and Skills Levy to help support apprenticeships for young people, including a change to fully fund SME apprenticeships for eligible people under 25. 

Alongside these changes, the Budget outlines Government plans to simplify the apprenticeship system and make it more efficient as short courses are introduced from April 2026, including removing the additional uplift to levy accounts; changing the expiry window to 12 months; changing the Government’s co-investment rate to 75% for levy-paying employers once they have exhausted all their funds; and working with employers to streamline the suite of apprenticeship standards available. 

ISA Reform 

From 6th April 2027, the Chancellor stated that the annual ISA cash limit will be set at £12,000, within the overall annual ISA limit of £20,000. Annual subscription limits will remain at £20,000 for ISAs, £4,000 for Lifetime ISAs and £9,000 for Junior ISAs and Child Trust Funds until 5th April 2031. Savers over the age of 65 will continue to be able to save up to £20,000 in a cash ISA each year. In addition, financial services firms have committed to providing new, easily navigable ways for people to find the right UK investment for them. 

Support for Scale-up Businesses 

The Chancellor announced support for businesses that want to start and scale their business to remain in the UK. This includes the new UK Listing Relief, which offers a three-year exemption from Stamp Duty Reserve Tax for companies listing in the UK from the point of listing, effective from 27th November 2025.  

Retail, Hospitality, and Leisure (RHL) Investment  

There were a number of commitments made during the Budget with regard to the retail, hospitality and leisure industries. These include:  

• An announcement that the Government will permanently lower business rates for retail, hospitality and leisure (as referenced above) by raising business rates for the most expensive properties such as warehouses used by large online retailers. The RHL multipliers will be 5p below national equivalents.  

• A National Licensing Policy Framework, aimed at boosting growth and increasing options for customers.  

• A new Retail and Hospitality Envoy to help champion these businesses within Government.  

• The removal of customers duty relief for low value imports (as referenced above) to support competition between high street businesses and online retailers.  

• A commitment to pursue rogue retailers who breach tobacco and vape regulations.  

AI and Innovation   

The Budget set out Government plans expand Innovate UK’s BRIDGE AI programme, updating the timeline for Innovate UK’s TechFirst programme delivery, announcing two new AI champions for growth sectors identified in the Industrial Strategy, supporting availability and adoption of business gigabit broadband solutions and mandating e-invoicing.  

In the budget, the Government also confirmed three more AI Growth Zones in the North East, North Wales, and South Wales.   

What is the GBCC response to the 2025 Autumn Budget? 

Putting aside the unprecedented leak from the OBR, many of the announcements made by the Chancellor offered little surprise as she decided to press ahead with another round of tax rises to facilitate broader spending plans. 

 From a business perspective, there were welcome announcements around offering free apprenticeships to SMEs and a commitment to supporting more people into the world of work. 

 It was pleasing to see a commitment to driving further firm-led innovation – namely around supporting scale ups listing on the London Stock Exchange, bolstering the remit of the British Business Bank and an extension of the EIS and VCT schemes. 

Consumers will welcome a much needed cut on energy bills, and many manufacturers will benefit from a similar scheme. However, firms operating in hospitality and retail are also crying out for support on this front. 

 Regionally, it was pleasing to hear the Government reaffirm commitment to the Midlands Rail Hub, the Creative Place Growth Fund and funding to deliver the West Midlands Growth Plan. However, additional powers for Mayoral Authorities to raise tourism taxes will need careful implementation to offset any inflationary impact. 

 The plans around supporting the transition to electric vehicle usage remain unclear – with an increase in both taxes and grant funding for different groups. 

Overall, businesses will be breathing a sigh of relief that they weren’t a marked target for tax hikes like last year, but a number of measures announced today will simply add to the crippling cost pressures that many face on a daily basis. 

Increasing the minimum wage and capping salary sacrifices will simply add to overheads and without meaningful reform to the proposed Employment Rights Bill will do little to encourage businesses to bolster their workforce. 

Changes to the business rates system fall well short of meaningful reform. More support for those in the hospitality and retail sector is welcome, but not at the expense of those operating in larger warehouses. 

 It was also disappointing to see very little announced around driving export activity – particularly for an economy like the West Midlands which has been badly knocked by the fallout from the Trump tariffs and wider geopolitical uncertainty. 

Meanwhile, we have also recently seen UK-wide business support funding of almost £1bn axed and replaced with a system of piecemeal support, raising concerns about inequality across the region. 

On entering Government, the Chancellor promised to get a grip of the country’s finances and create an entrepreneurial platform for firms to flourish. With taxes set to reach record levels by the end of the decade, coupled with subdued investment and hiring levels, this vision seems a distant reality. 

This Budget does not go far enough to give business confidence the boost it needs.