Staffordshire Chambers of Commerce has spoken of some relief following yesterday’s Autumn Budget – but says there are still challenges ahead for the local business community.
The Chamber wrote to the Treasury before the budget asking Chancellor Rachel Reeves to ease the growing pain felt by employers from rising taxes, wage costs and policy uncertainty.
The Chancellor’s second budget included:
- Income Tax and National Insurance thresholds frozen until 2031
- National Minimum Wage to rise by 4.1 per cent from April 2026
- Business rates multipliers to be amended
- Cash ISA limit cut from £20,000 to £12,000 per year for under 65s, from April 2027
- A £2,000 cap on pension contributions made through salary sacrifice
- Electric vehicle (EV) grant extended to 2030, but EVs will be subject to new 3p per mile tax
- Some rail fares in England to be frozen for 2026.
Declan Riddell, policy adviser at Staffordshire Chambers, said: “The overriding message in our pre-Budget submission was for no more taxes on business, so it’s a relief to see that the Chancellor has listened and decided not to add any major new taxes on the business community, many of whom are still reeling from some of the 2024 Budget announcements.
“However, the rise in the minimum wage will be another cost burden for businesses and there are also concerns on proposed changes to salary sacrifice schemes.
“Charging drivers of electric vehicles may deter motorists from making the switch to an electric vehicle, although we welcome further support to enhance public charging infrastructure.”
He added: “Permanently lower business rates for hard pressed retail, hospitality and leisure firms, will be a step in the right direction. We’ll also look forward to getting more clarity on transport and infrastructure commitments.”
Giving an overview of the announcements, Paul Sissons, professor of regional economic development and policy at Keele University, said: “The budget included a range of widely trailed tax increases; with the total tax take projected to reach 38.3 per cent of GDP in 2030-31.
“The budget was relatively light on new growth measures, and in the updated analysis both growth and productivity forecasts for the coming years have been revised down by the Office for Budget Responsibility. Some new extensions to devolution were announced, with increasing funding for the seven Mayoral Strategic Authorities.
“The pre-announced uprating of the National Living Wage and National Minimum Wage rates will see wages increased from next April. The proportional increase is particularly pronounced for younger workers (18 to 20-year-olds), increasing by 85 pence an hour to £10.85.
“In the context of the close to one million young people who are not in education, employment or training, this does come with some risk of further deteriorating job prospects for younger workers.
“The budget has committed spending of £820 million to the previously announced ‘youth guarantee’, to provide paid work placements for 18 to 21-year-olds who are long-term unemployed, however previous analysis has shown that the scheme would only cover a minority of young people who are out of work.”
