Deniz FuchidzhievBusiness leaders comment on UK Chancellor Rachel Reeves’ Autumn Budget speech.
Rebecca Wilkinson, Business Tax Partner and Property and Construction sector specialist at business advisory and accountancy firm Menzies LLP, says:
“Private landlords holding rental portfolios can breathe easier, as CGT rates on residential property sales remain at 24%. With no-fault evictions ending and new rent control rules on the horizon, many landlords are considering exiting the buy-to-let market. Fortunately, they can now do so without facing raises to CGT.
“However, a SDLT surcharge hike from 3% to 5% for companies and second-property buyers may dampen demand. Landlords hoping to sell with tenants in place may struggle to find fewer buyers, as higher SDLT makes buy-to-let properties a less attractive prospect.
Property developers will also be subject to higher rates of SDLT. This, coupled with rising labour and national insurance costs, could cause delays to the government’s target to build more affordable homes. Financing new projects may also tighten with the CGT rate on share sales rising from 20% to 24%, deterring high-net worth individuals and overseas investors who often fund UK projects due to favourable tax rates, and may well look elsewhere.”
Dave Capper, CEO of health and wellbeing provider Westfield Health, says:
“The Chancellor previously ruled out taxing workers, and it’s a welcome move that this decision has been upheld in the Autumn Budget. This reflects the government’s commitment to keeping people’s wellbeing at the heart of its health policy.
Capital Gains Tax and National Insurance changes
We’re aware that adjustments to Capital Gains Tax (CGT) and increased employer national insurance contributions raise significant concerns for many businesses, particularly those operating with tighter budgets. These changes could hinder businesses’ ability to hire talent or may result in lower pay increases for employees. Ultimately, this situation affects working individuals through either reduced wages or rising inflation.
When costs rise, there’s a real risk that employers will cut back on workplace wellbeing initiatives and even drop pay rises. Businesses must avoid viewing wellbeing programs as discretionary. These initiatives are not just a cost but a vital investment in your people’s long-term resilience, health and productivity. Cutting back on them could lead to higher absenteeism, burnout and reduced morale, ultimately impacting companies financially.
Insurance Premium Tax
“While we acknowledge the government’s decision to maintain the Insurance Premium Tax (IPT), we believe this moment represents a missed opportunity to incentivise health insurance ownership during a critical health crisis. Our recent research indicates that 40% of employees prioritise access to private healthcare over other benefits, underscoring the importance of affordable health insurance.
“Instead of merely maintaining the status quo, we urge the government to consider more innovative approaches. By eliminating IPT for health insurance, the government could have promoted greater access to private healthcare and encouraged businesses to invest in their employees’ health. With rising living costs, a more proactive stance would ensure that both physical and mental health support remain accessible, fostering a healthier population.
“Affordable health insurance not only protects individual wellbeing but also alleviates long-term pressure on public health services by encouraging early intervention through private healthcare options. We hope to see the Treasury and the Health Department collaborate in driving meaningful change, demonstrating courage and creativity in addressing the complexities of our health system.
Household Support Fund
“Financial insecurity is deeply intertwined with mental health challenges. Vulnerable households, in particular, are at a greater risk, which is why the decision to extend the Household Support Fund by £1 billion is so critical.
“The government has acknowledged the direct connection between financial stability and mental health by continuing to support this. Further expanding the fund is still an important step, as it provides the security needed to help at-risk families avoid mental health crises, especially given the current cost of living pressures.
Funding public health services
“Many have debated the benefits and consequences of taxing the ‘super-rich’ in the lead-up to this Autumn Budget. There is a real opportunity to invest those additional funds into public health services, particularly mental health. A vast number of people are facing crises and are now waiting months, even years, to receive support through public-funded mental health services.
“The overall burden on the healthcare system and specific services must continue to be tackled by the Labour government and supported by alternative access to private healthcare systems that can help. Allocating more funding to these services will help with faster access to treatment, improved mental health outcomes, and reduced pressure on families who may otherwise need to turn to private care. By funding these services with an increase of £22.6 billion in day-to-day health spending, hopefully everyone – regardless of income – will have access to the help they need when they need it.”
Dr David Crosthwaite, chief economist at BCIS, says:
“Reeves announced £100 billion in capital spending over the next five-years with the mantra “invest, invest, invest” but I’m not convinced this is a budget for growth.
“There are conflicting announcements, and as it stands the investment outlined in the Budget is unlikely to make a material difference to the construction sector and “get Britain building again” – a stated aim of the Government.
“I was hoping for something a little more radical, but perhaps that will come in the Spending Review next spring.
“We really need the Government to invest in fixed capital programmes that will actually “get Britain building again” and drive wider economic growth. Four months in and this feels like a missed opportunity for the new Government.
“The Government did announce spending on construction projects, such as schools, social housing and transport to name a few.
“However, it still remains unclear how the Government intends to meet its self-imposed target of building 1.5 million homes over the life of the Parliament, without tackling the existing skills shortage.
“The resurrection of the HS2 link from Old Oak Common to Euston is a positive move, but we need more commitment to other infrastructure projects in the pipeline with the Lower Thames Crossing project a prime example.”
Jonathan Pearson, director of Residentially, says: “The government was elected following its commitment to fix the housing crisis and deliver what they have described as ‘the biggest increase in social and affordable housebuilding in a generation.’ In this budget, they’ve taken significant steps to help make their ambitious housebuilding plans a reality by addressing some of the uncertainty that has held the social housing sector for far too long.
“For example, the new five-year rent settlement and reduced Right to Buy discounts are crucial measures to give more stability and reassurance to social housing providers and should help them better plan for the long term.
“The Chancellor’s promised increase to the Affordable Homes Programme, alongside more investment to boost the supply of new homes and back small housebuilders, is also hugely encouraging for the sector.
“Alongside this, Rachel Reeves has again committed to hiring hundreds more planning officers, which is a critical measure as councils are under-resourced and need more support to meet the government’s ambitious housing targets. However, funding must continue to flow to local authorities to ensure they can meet these demands; it would be counterintuitive to expect them to accelerate planning approvals without the necessary financial support.
Leyla Alieva, CEO and Co-Founder of NEOL Copper Technologies says:
“The fuel duty freeze is welcome news for the fleet industry– fleet operators are the backbone of this country, and vital to the supply chains of nearly all sectors. But the industry operates on slim margins, with one of the biggest expenditures being fuel costs. This freeze protects the industry from further overheads and spend on fuel, securing its future.
“However, the fuel prices are still high, and this freeze might end in the near future, if not in 2025. So the commercial fleet industry will strongly benefit from looking at innovations and advancements that can increase fuel economies and reduce fuels costs, and increase the lifespan of vehicles and their mechanical parts. Advancements in lubricant technology is a key factor in this, making fuel last longer and vehicles drive further.”
Kersten Muller, Property tax expert and Managing Director at Alvarez & Marsal Tax, says:
“The property industry is probably a net beneficiary from the Autumn Budget. This, coupled with the expectation of lower interest rates to come, will be good news for the sector that has experienced significant turbulence over the last 18 -24 months.“
CGT
“An increase in Capital Gains Tax was widely expected. The announcement of an effective alignment of CGT rates at 18% (lower) and 24% (higher) for all assets was probably less than expected, this will be a relief to investors who will also welcome the simplification. Whilst investors in residential property will not face an increase in CGT, the SDLT surcharge on residential investment properties will increase from 2% to 5% tomorrow.”
House Building
“Much more significant than capital gains and stamp duty reforms were the announcements on housing. A boost to housing one of the Labour government’s key aims, and the Budget measures appear to have been well-received if the share prices of house builders are anything to go by.
“The measures announced are certainly wide-ranging. The headline of investing £5bn to deliver the housing plan is only part of it.
“A key part will be to increase the supply of affordable homes, which is to be achieved by a reduction in the Right to Buy discount; crucially Local Authorities will be able to retain the proceeds from sales under Right to Buy and decide how to spend them. Another element is a £1bn boost to remediate homes impacted by unsafe classing.”
Planning Funding
“Additional funding promised for the planning system is welcome. This will be needed to accelerate the building of new homes although it needs to be coupled with reform.”
Business Rate Relief
“Changes to the Business Rate relief for the retail, hospitality and leisure sector will be retained, although lowered from 75% to 40%. This means businesses in the sector will still face a significant increase in their rates bill from April 2025 but nowhere near the £3bn cliff edge that had been expected.”
Thomas Balashev, Founder and CEO of Monta Capital, comments: “Investors can breathe a sigh of relief with the exemption of buy-to-let properties from capital gains tax in the Autumn Budget. Tax hikes would have had a significant impact on the UK real estate market, potentially prompting a rush to sell properties, disrupting market activity and stifling investment in development, with smaller investors and local economies being hit particularly hard.”
“From an institutional real estate standpoint, this policy is a clear signal for ongoing investment in commercial real estate (CRE) projects. With the stability of tax policies, institutional investors can feel confident allocating capital to long-term ventures, reinforcing the UK’s position as a key player in the global market. Predictable regulatory frameworks give firms the confidence to plan ahead, focusing on sustainable urban regeneration, expanding mixed-use developments, and breathing new life into underused assets. Steady market conditions also help to address the ongoing supply-demand challenges in key sectors like industrial, office, and retail spaces, creating a positive environment for growth and innovation.”
Fraser Stewart, Co-founder of Lyfeguard, says: “Labour repeatedly outlined in their manifesto that they would not raise Income Tax, NI or VAT but clearly, this promise did not cover employers’ National Insurance payments. This change will be felt hardest by small businesses who will feel the direct impact of this increase in tax contributions.”
“However, the Business Tax roadmap is an encouraging move from Reeves, enabling businesses to understand Labour’s direction of travel with sufficient time to plan for what might be coming. What we need now is a growth roadmap, with Labour demonstrating a clear commitment to SMEs within the UK.”
Commenting on Agricultural Property Relief and Business Property Relief reform, Idina Glyn, Partner at Mishcon de Reya, says:
“The restriction of Agricultural Property Relief (APR) and Business Property Relief (BPR) has been threatened many times, but the Budget today has executed a swift blow to the foundation of our local communities and rural economy. This cap will increase the Inheritance Tax (IHT) payable by a substantial number of business owners and landowners – and not just the ultrawealthy. The incentives for housebuilding and pressure to deliver new homes means land values often exceed the agricultural value and even small farms can be worth well over £1 million.
“The key question for many farmers and business owners is whether they will have a viable business to pass on to their successor(s) after settling the new IHT liabilities. This will particularly impact farming businesses, which are reliant on their acreage.
“All business owners will now need to review their succession plans to ensure their business can endure the increased IHT liability from April 2026. For some, this may mean tightening already tight budgets to set aside sinking funds, or to look at life insurance when previously they did not need to do so.
“The obvious way to manage these provisions is to start planning earlier and fragment ownership, moving assets out of an individual’s estate ahead of a potential IHT charge on their death. Ownership could be spread throughout the family, for instance.
“It is now more likely that the children of farmers and business owners will need to borrow to new levels or sell if they wish to keep the family farm or business. This could mean we see more consolidation in the market as landowners with other resources take the opportunity to expand.
“The cap may also limit the ability of business owners to invest in new equipment, technology, or expansion, which could slow down growth and innovation within the sectors. Businesses may be forced to divide or sell because of these changes to IHT. We shouldn’t forget the main reason for the original introduction of APR and BPR was to keep these businesses intact for the benefit of our economy. Businesses that can survive the IHT bill because they have sufficient surplus resources are likely to increase the prices of their goods and services to maintain profitability.
“We may also see more imaginative family governance structures being used. Traditionally, family constitutions have been used by international families or families with siblings running estates together. The current changes incentivise fragmentation. Well-advised families might look at spreading assets but with “strings attached”, where each family member is bound by a set of rules and must take steps to protect the assets from third parties, such as by entering into pre- or post-nuptial agreements. This could need a different skill set to those of traditional landed estate advisors, both in creating and enforcing the agreements.”
Michael Topham, CEO of Biffa, says: “Today’s Budget was an important opportunity for the Government to drive investment in a fair transition to a greener, circular economy. What we have seen are very positive moves from Ministers to back capital spending in all parts of the economy and to provide a stable policy environment for investors, but we believe the announcements today could have gone a lot further.
“For example, we welcome the decisions made about Landfill Tax rates and to support the increase in the Plastic Packaging Tax (PPT) rate for next year in line with inflation set out today. However, we believe that to deliver a step-change in demand for recycled plastic, a progressive PPT is essential. Biffa has campaigned for this change for years and we will continue to raise it with the Government.
“Similarly, although the Budget makes clear that the Government wants to increase uptake of electric vehicles, we’re disappointed the Budget didn’t offer significant new backing for decarbonising commercial road vehicles. We very much want to transition more of our collection fleet of HGVs to alternative fuels. To deliver this, we need a policy framework that will drive investment in grid upgrades and accelerate progress on HGV electrification. In the interim, whilst the infrastructure for electric vehicles develops, we need incentives to drive the adoption of low-carbon fuels such as HVO to cut emissions. Again, we’ll continue to call for these changes.
“Overall, we’re pleased that the Chancellor restated the Government’s ongoing commitment to maximising economic growth, boosting skills, improving productivity, and making the UK a clean energy superpower. We welcome her comments about the proposed Industrial Strategy, investment in green hydrogen, and funding for Carbon Capture and Storage projects which we’re already supporting as a cornerstone investor for the Protos EfW in the Northwest cluster. We will work with Ministers and the rest of our sector on these opportunities and look to go further to unlock the full potential of decarbonisation and a zero-waste economy.”
Kieran Mackie, managing director of Amulet Security, says:
“The announcement that the government will allocate funding to directly target and break up criminal gangs involved in organised shoplifting will address an increasingly alarming issue in the UK.
“As shoplifting has risen in recent years, most recently by 29%, so too has the risk to shop workers. The retail industry, police, and security services need to work together to tackle this rise and deter gangs and individuals from repeat offending.
“Security officers play an important role in the safety of retail environments, tailored to the specific risks faced in each setting, whether that be anti-social behaviour, vandalism, or opportunistic theft. With budget allocation to targeting shoplifting and prosecuting low-level theft, security services will better support the police in identifying and charging shoplifters.
“No one deserves to feel unsafe at work. Shoplifting puts workers at risk and costs businesses a reported £1.8 billion per year. This renewed focus is better for retail outlets and the people that work in them.”
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