Raj Kandola, acting deputy CEO of Greater Birmingham Chambers of Commerce, said: “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 scales up 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 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.
“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.”
Tracy Ashby, partner in the Wills, Probate & Lifetime Planning team at FBC Manby Bowdler, said a raft of new measures would draw more people into paying tax.
Tracy, who works at the law firm’s Knowle office, said: “There is much in today’s Budget which will have a direct impact on lifetime planning and how people most efficiently manage their finances.
“A combination of freezing allowances on Inheritance Tax (IHT) and rising property values means that more people will inevitably be drawn into its scope over the coming years.
“The changes to the rules around cash ISAs will also be something many more people will need to consider as they seek the most efficient ways of managing their money.
“The introduction of the so-called Mansion Tax and cap on the amount workers can put into their pensions through salary sacrifice schemes before National Insurance contributions become due are added factors those planning their financial future must now consider.
“There is no doubt today’s Budget has changed the landscape for lifetime planning and it’s essential people seek expert advice if they think they could be affected.”
Steve Whitmarsh, chief executive of Multifleet of Solihull, which trades as runyourfleet, said: “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% 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.”
Tim Lloyd, owner of CQS Solutions which has bases in Birmingham, Shropshire and Mid Wales, said the sector was increasingly frustrated at the Government’s failure to fund the construction projects it had already promised.
“The Government was elected on the back of promises to build 1.5million new homes and fund major new infrastructure projects.
“But we have yet to see many signs of those promises being delivered or of very many new public sector tenders coming through.
“This Budget could have been an opportunity to change that, but I fear that opportunity has been missed.
“I wanted to see real action to make it more affordable to employ new people, to develop the skills and training we urgently need and to create the economic conditions which would drive growth.
“I certainly didn’t hear enough to make me think things will change dramatically in the next 12 months and that was disappointing.
“The mansion tax is likely to subdue activity in the housing market and the range of new wealth taxes will undoubtedly act as a disincentive to success.
“The endless speculation about what taxes she would – or would not – increase, the U-turns and the Government infighting have all led to the economic paralysis we have seen in recent months.
“Much the same thing happened ahead of the Chancellor’s first Budget last year and I would hope that important lessons have now been learned and we get no repeat in 2026.”
Sophie Horgan, director of Horgan Homes, described the Chancellor’s speech as a ‘sticking plaster’ Budget which did not address the key issues holding back the UK economy.
“I’m afraid any confidence in this Budget and this chancellor was fatally undermined when Rachel Reeves performed her screeching U-turn over tax rises two weeks ago.
“It was clear evidence that this is a Chancellor who puts political expediency ahead of economic integrity.
“As a result, today’s budget is a sticking plaster of a statement which will do nothing to restore faith in this Chancellor.
“I wanted to see clear action to prioritise the small housing sites and SME constructors who are the backbone of housebuilding in this country. Things like cutting red tape and affordable housing obligations around small sites of 20 homes or fewer would have made a huge difference.
“I heard little which will help first-time buyers achieve their housing dreams and even less about creating the sort of Government-backed finance deals which would enable smaller builders to press ahead with projects with real confidence.
“We have heard plenty of talk from this Government about getting Britain building, but that simply won’t happen unless the army of SME builders is supported to create the homes we know people want.
“The fact we heard so little about how the Government might achieve that means not only is there no chance of building the 1.5million homes the Government has promised, but that generations of people now look unlikely to be able to follow their dream of owning their own home for years to come.”
Warren Dickson, CEO, Corporate & Commercial, Howden UK&I said: "The freezing of fuel duty for five months creates short-term reprieve but uncertainty for long-term planning, which is the bedrock for creating a sustainable and prosperous business plan. For companies that have already made or will make the transition to electric or plug-in-hybrid vehicle fleets, the new mileage tax means companies still need balance the books, which could mean making cuts in other areas.
The ban on the sale of petrol and diesel vehicles from 2030 adds a huge pressure for fleet operators to convert to electric or hybrid. And now, for businesses that have or will soon move to electric or hybrid vehicles they need to factor in an additional 3p per mile for battery electric vehicles and 1.5p per mile for plug-in-hybrid cars on top of existing road taxes. Multiply that time and time again for anyone involved in transportation of products or people, and that’s a big squeeze on outgoings.
Attracting and retaining talent is important to any business and the increases to the minimum wage will encourage this. However, the UK economy is comprised of mainly SMEs and an increase to the minimum wage means increased cost pressures at a time when businesses are factoring in more cost raises than ever before.”
Steve Hitchiner, chair of the Tax Group at the Society of Pensions Professionals said; “Restricting salary sacrifice for pensions will affect the take home pay of millions of employees – especially basic rate taxpayers – and is a tax on working people, in spirit if not in name.
“It is also another sizeable cost to employers and, perhaps most importantly its restriction will reduce pension saving.”
Building societies reacted with disappointment at the plans to restrict the amount of cash to be invested into an ISA to £12,000.
It has been described as a ‘sucker punch for savers and deeply disappointing for lenders’. Societies said they support the Government’s aim to boost an investing culture in the UK, but claimed restricting choice is not the way to do it.
Mark Minihane, EY UK&I Tax Partner, based in Birmingham, said: "The Chancellor announced a package of measures aimed at raising revenue but also driving up productivity, investing in key infrastructure and building business and investor confidence, all critical components for economic growth. Holding business tax rates steady provides welcomed certainty and allows businesses to focus on job creation and growth.
"Many companies will likely feel relief that this Budget avoided mirroring the raft of business taxes announced last Autumn, with much of the focus instead on revenue-raising measures targeted at individuals and some targeted adjustments for companies.
"Cutting low-value import relief should provide a competitive advantage to the UK high street, while proposals to reduce energy bills could offer valuable support to eligible firms in high-growth sectors like automotive and aerospace. Although the restriction of NICs relief for pension contributions given under salary sacrifice and the reduction in the main rate of capital allowances will add to company costs over time, and personal taxes may present challenges for consumer-facing sectors reliant on discretionary spending, this was a relatively quiet Budget for business.
"Nevertheless, businesses continue to shoulder a substantial amount of the UK's overall tax take and face elevated labour costs. Delivering on the Government's priority growth mission will clearly require further measures designed to support business activity and investment, particularly across key sectors identified in the Industrial Strategy."
