We’ll publish further commentary on today’s Budget once we’ve had to opportunity to review the full document and details.
From a Cumbrian perspective it was extremely disappointing to hear reference to additional funding for Mayoral Authorities for business support and skills, alongside investments in the devolved nations, with no mention of any equivalent support to areas such as Cumbria. As we all know our businesses have significant needs and opportunities which equally require and would benefit from support. It’s hard to see how this stacks up for us in Cumbria, and other places like us, against the stated commitment to increasing productivity.
While we’ve escaped a further obvious increase to Employers’ National Insurance, actual National Insurance for both employers and employees will increase with the increases in the National Minimum and Living wages and, from April 2029, the reduction in the maximum salary sacrifice pension contribution to £2,00 a year.
This sits alongside the increases from April 2026 in the National Living Wage of 4.1%, bringing it to £12.71/hour and the National Minimum Wage for 18-20 year olds of 8.5% to £10.85/hour. The later raises particular concerns for job opportunities for that age group.
The increases to NMW and NLW will increase costs to employers, not just through direct increases but through the knock-on effect on other roles – impacting on decisions on staffing levels, investment, etc.
It’s good news though that apprenticeships for under 25s will become completely free for SMEs – although the direct cost is already minimal and a more significant incentive would have been to support the costs of staff providing support to apprentices.
We need to review the implications and opportunities of changes to enterprise incentives and on the tax system for dividends and property income. Also the changes around transferring businesses into employee ownership – which the Chancellor claims will maintain sufficient incentive.
The announcement of a call for evidence on supporting cooperatives was interesting, and we’ll obviously be engaging with that in due course.
We await the responses to recommendations on nuclear red tape, which are promised within 3 months.
Further freezing of fuel duty is always good news.
