Sian Sutherland, co-founder, A Plastic Planet & Plastic Health Council:
“The government’s investment in carbon capture technology is nothing more than a fig leaf to the oil giants. Show me the balance sheet that proves it’s possible to have a healthy economy on a dying planet? Prime Minister Starmer pledged his government would ‘choose a different path’ with the budget to rescue the years of Conservative derailment, yet we have seen more short-sighted policy choices which keep us in a cycle of planetary vandalism.
“Our government needs to decide who it is elected to protect – the profits of the fossil fuel giants or the healthy future of their citizens. If we do not adopt stronger environmental policies, incentivising business to do better, we will see devastation that eclipses the 2008 financial crisis and the Covid-19 pandemic. We must recognise our existence is connected to one huge system of life and if we disconnect ourselves from that system, we disconnect ourselves from not just fiscal security but life itself.”
James Lowman, CEO, ACS:
“The cold hard facts are that the measures announced in the past 24 hours have added two-thirds of a billion pounds to the direct cost base of the UK’s local shops. At a time when trade is tough and operating costs are stubbornly high, this will be challenging for our members to absorb and there will be some casualties on high streets and in villages and estates across the country.
“Not all shops will be impacted the same. The smallest retailers, with low NICs bills and lower rateable values for their shops, will benefit from the welcome increase in the employment allowance and the retention of 40% of the retail, hospitality and leisure business rates relief. Retailers with a larger store, a number of sites or those operating a chain will receive limited benefit from these mitigations, and this will impact their ability to invest and to continue to offer services in the communities they serve.”
Erin Brookes, MD and head of retail and consumer Europe, Alvarez & Marsal:
“Today’s budget is a tale of two halves for retailers. Business rates relief will avoid the cliff-edge that many had feared next year, while the maintenance of R&D tax relief will help encourage investment in new technology and products. The increase in the national living wage (NLW) may offer a welcome boost to consumer confidence, which has been notably low, with many individuals concerned about their personal finances.
“However, this comes as a double-edged sword for retailers. While it’s positive to uplift lower-paid employees – many of whom make up the three million employed in the sector, including younger and part-time workers – the associated rise in operating costs could lead to a challenging adjustment period. This, coupled with the increase in employer national insurance, means that retailers may face difficult decisions as they seek to balance supporting their frontline teams with the need to invest in productivity-enhancing areas like technology. To manage these added costs, we could see businesses prioritising cost efficiencies elsewhere to stay resilient against this headwind.”
Rupert Ashby, CEO, British Frozen Food Federation:
“While this increase was widely trailed, loading extra costs on to our members is not a welcome move.
“This is yet another challenge for food producers who are still dealing with the effects of food inflation. They will have little choice, other than to pass this cost onto customers in the form of higher food prices, at a time when many people are still struggling with the cost of living crisis.”
Ash Corbett-Collins, chairman, CAMRA:
“Despite general rises in alcohol duty next year, CAMRA is pleased to see the Chancellor’s decision to cut the rate of tax specifically on beer and cider served in pubs, clubs and taprooms. This will help pub-goers as well as independent breweries and cider producers who sell more of their products into pubs, and recognises the principle that drinking in the community setting of the local pub is far preferable to the likes of cheap supermarket alcohol.”
Jane Martin, CEO, City to Sea:
“The chancellor used her hour-long delivery to hammer home the black hole in the Treasury left by her predecessors. However, if the government wants to save money, it could look to end fossil fuel subsidies rather than stall progress on plastic pollution.
“The cost of the plastic problem should make Reeves’ eyes water – for a product that is used once, councils pay millions in collection, sorting, and waste management, plus the £1bn spent per year dealing with littering.
“Through comprehensive policy measures including further plastic bans, alongside legally binding reusable packaging targets, the government would incentivise businesses and retailers to expand existing reuse and refill packaging initiatives and end the reliance on polluting single-use plastic packaging. The policies are there to tackle the plastic problem, the government just has to act.”
Marco Forgione, director general, Chartered Institute of Export & International Trade:
“Today’s budget has delivered a mixed bag for UK businesses engaging in international trade. We welcome policy announcements on long-term measures for sectoral growth, including the development of UK manufacturing strengths, as well as specific regional investment and infrastructure development. Particularly, the confirmation of funding for the East Midlands Investment Zone and the designation of five new customs sites in existing freeports (including designated tax sites in the Celtic Freeport) which will help attract more inward investment and support business growth.
“We are delighted to see the announcements on the extension of the Digital Adoption Taskforce, as well as the government’s soon-to-be-announced details on a £4m pilots package to encourage tech adoption for SMEs. Government support to encourage the adoption of trade tech, and related funding for investment, was a key recommendation from the E-Commerce Trade Commission report in September and was included in CIOE&IT’s submission to the Treasury. These initiatives really will begin to make a difference and help accelerate UK MSME exporting to the world.”
Phil Pluck, CEO, Cold Chain Federation:
“The focus on new fiscal rules for infrastructure investment is promising. We eagerly anticipate progress in removing the obstacles hindering our sector’s growth. However, it’s crucial to collaborate closely with industry to ensure that investments in future industries drive UK-wide growth.
“However, a £40 billion increase in taxation, where we see businesses directly contributing £25 billion to increased national insurance, is concerning. Especially so when you consider an increase in the National Minimum Wage and possible increases in borrowing rates due to pressure on inflation due to new fiscal borrowing rules.
“The UK cold chain sector adds £14 billion to UK GDP; it already contributes £3.7 billion in UK tax and employs over 184,000 people. This is a budget that simply does not recognise or fully support its continuing contribution as vital part of UK national infrastructure.”
Richard Lloyd, MD, Encirc Beverages:
“While the reduction in draught tax duty is a welcome move for the nation, the government progressing with the changes to the 0.5% abv alcohol duty regime for wine and increasing alcohol duty presents a real challenge for the UK beverages sector.
“The sector will now need to come together to address the impact of these changes and put in long-term strategies to support innovation and flexibility in adapting to societal and environmental pressures.”
Andy Jones, retail indirect tax leader, EY UK:
“For retailers, the bottom line is that today’s budget will likely result in increased cost pressures amid what is already a challenging backdrop. A particularly significant headline, as expected, is the proposed increase in the national minimum wage and national insurance contributions (NICs) for employers. Whilst good news for workers, this will impact retailers during a time of already-intense cost pressures.
“Moreover, while the announcement to ease the removal of the business rate discount will be welcome news for some businesses, it will still be an increase on the amounts paid today. That said, many may be hopeful that it is a first indication of the new government’s approach to taxation and an indication that further reliefs may come in the future. Therefore, overall, whilst the freeze on fuel duty and the reduction in alcohol duty rates for draught products will be welcomed, the budget will likely lead to increased inflationary pressures for retailers and likely price rises for consumers.”
Chris Sanger, tax policy leader, EY:
“Business rates is an area that governments have struggled with for at least the last decade. This is a tax that is paid regardless of whether a business is in the red or the black, whether there are profits to fund this tax or not. We have seen the tax rate increase from the low 40s to the high 50s, marking a big increase in the costs for those firms using real estate.
“Today’s announcement of a permanently lower sector multiplier for retail, hospitality and leisure will be recognising the fact that such businesses pay a far higher proportion of the business rates bill than their share of the economy. The fact that this will be paid for by those with larger properties is likely to be less welcome, building even greater bias into the tax system. The future consultation will provide the opportunity for this and other distortions of the business rates system to be debated and hopefully addressed.”
Howard Cox, founder, FairFuelUK:
“I am delighted that Rachel Reeves has listened to FairFuelUK supporters and her party MPs’ constituents. She finally recognises that keeping fuel duty frozen is at the core of a laudable journey to economic growth. So, Rachel, that’s a great start. But please don’t rest on your laurels. Let’s build the first-ever road user transport strategy that benefits the economy without your party’s false and emotional, scientifically baseless belief that the UK is the only country to save the planet and the motorist is to blame for all the environmental ills. That costly brainwashing must stop now. Start incentivising the UK’s 37 million drivers and stop seeing them as an easy cash cow. ”
Mo Razzaq, national president, Federation of Independent Retailers:
“While there were some gains, there was also some pain for independent retailers at a time when our finances are being stretched to the limit.
“Small independent retailers are the backbone of their communities. We provide employment and create jobs. In many cases, we give young people their first jobs. As responsible employers we want to ensure we are paying a fair wage to our staff. But a bigger than expected rise to the national living wage to £12.21 an hour from April 2025 is a step too far for hard-pressed small businesses.
“As well as paying our staff more in wages, we must pay more in national insurance and pension costs, at a time when many of our other costs, including energy costs, are rising. There is no easy way for small retailers to combat these increases. As so many of the products that convenience store owners are price-marked, we cannot pass these costs onto our customers.
“The only solution available to independent shop owners is to reduce staff hours and staff numbers and, somehow, take on even more hours ourselves.
“When tobacco prices rise, more smokers are lured to the illicit market, which damages the business of legitimate retailers and damages communities. The government needs to do more to tackle the illicit market to better protect the livelihoods of members who legitimately sell tobacco.”
James Bielby, CEO, FWD:
“The increase in national living wage and employer national insurance contributions will add an estimated £110m in direct wage costs to the wholesale sector, a critical link in the UK’s food and drink supply chain. Furthermore, the lack of clarity on business rates reform means that wholesalers operating large physical premises remain disproportionately impacted by high rates. Without meaningful reform and a set timeline, these businesses will continue to shoulder a heavier burden than those in sectors with minimal property overhead.
“We are pleased to see a number of positive steps in today’s budget that will bolster the wholesale sector. The freeze on fuel duty for another year is a welcome relief for wholesalers facing rising costs, allowing for greater stability in our operations.”
Jim Bligh, director of corporate affairs and packaging, Food & Drink Federation:
“Driving investment and growth is critical to ensuring the continued success of the UK’s largest manufacturing sector, and protecting the nation’s food security. So we welcome the Chancellor’s focus on a consistent, long-term approach to tax and regulation, which should help unleash the growth potential of the food and drink manufacturing industry’s 12,500 businesses.
“As a critical advanced manufacturing sector, we stand ready to work with government to make the most of this support. Boosting investment in R&D will help the industry to create jobs, drive innovation, and grow export opportunities – resulting in a stronger industry that underpins the nation’s food security.
“Food and drink manufacturers want and need a circular economy for packaging recycling, so it’s great news that the government will enable companies to use mass balance accounting. This important change will open up new markets for advanced recycling in the UK, creating green jobs and investment opportunities, while increasing the amount of recycled content used in food-grade packaging.”
Simon Shelbourn, CFO, Kingsland Drinks:
“Further taxing non-draught alcohol hurts everyone. Whilst the government is working hard to plug the hole in the country’s finances, the consumer is being further penalised despite already bearing the weight of the cost of living crisis, and much of the drinks industry will once again have to prove its resilience despite being positioned to drive economic growth.
“The move is damaging to the industry and a setback to firms across the board who have worked tirelessly in recent years to withstand relentless taxation in the toughest of trading conditions.”
Daniel Zeichner, minister for food security and rural affairs:
“Our commitment to farmers and the vital role they play to feed our nation remains steadfast.
“That is why this government will commit to the largest-ever budget directed at sustainable food production and nature’s recovery in our country’s history, enabling us to keep momentum on the path to a more resilient and sustainable farming sector.
“ELM schemes will remain at the centre of our offer for farmers and nature, with the Sustainable Farming Incentive, Countryside Stewardship Higher Tier and Landscape Recovery all continuing.
“We will also support farmers with the exceptional impact of flooding last winter, paying out £60m for farmers affected by unprecedented rainfall and flooding through the Farming Recovery Fund.
“Our focus will be on making sure funding is used to the best effect for food, farming and nature, and that our schemes work for farms who have been too often ignored such as small, grassland, upland and tenanted farms.”
Nick Summers, MD, NCASS:
“Today’s budget is deeply disappointing. It missed the opportunity to provide the support that hospitality and NTE needs and will significantly impact the small and micro independent businesses that make up much of the foundational economy.
“The measures put in place to support employees and employment allowance are positive. However, there has been no tax reform and business rates relief has decreased by 35%. In addition, increases to the national living wage, national minimum wage and employer national insurance contributions could further damage any recovery for our industry.
“Independent hospitality has suffered enough – without profit, we are merely tax collectors. Solutions such as hot food tax reform (hot food tax is discriminatory), a sliding scale for VAT and a meaningful VAT threshold increase has been ignored again. The Chancellor must engage with small and micro businesses urgently to avoid further irrecoverable loss. We will continue to lobby government, work with other associations and raise the profile of our members and the wider sector.”
Simon Williams, head of policy, RAC:
“Drivers will breathe an enormous sigh of relief after all the speculation that the 5p cut would be scrapped at the same time as pushing duty up beyond the long-term rate of 57.95p.
“It’s good to see the government firmly recognising the importance of the car to millions of households up and down the country. Eight in 10 drivers tell us they are dependent on their vehicles for the journeys they need to make, while 70% of commuters who live in rural areas have no other feasible alternatives to get to work beyond taking the car.
“It’s also worth remembering that even as of today, 56% of the total price of a litre of petrol is already tax in the form of fuel duty, and the VAT that is charged on top.”
Richard Curry, retail consultant, Rapleys:
“Retail and hospitality in particular have been hit hard by many forms of cost over the past four years, from the unexpected, like Covid-19 and international conflict, to the more expected like inflation, energy prices and Brexit. Yet, despite the growth and investment promised pre-budget, what we have seen for retail and hospitality are more costs and few incentives.
“While the rises to the real living wage in sentiment are positive, it will hit the hospitality and retail sectors hard, on top of the business rates relief not being extended at the same level – in fact halved with no immediate reforms in the meantime. This will be hard for operators to swallow at a time when a boost was needed and we may see some food & beverage operators disappear as a result. Those businesses that have debt will find it really hard to compete, and those that have worked hard to build up cash reserves and adapt their models during the last few years will compete but will likely need to pass on costs to consumers.”
Richard Smith, MD, RHA:
“We welcome today’s brave decision from the Chancellor Rachel Reeves to continue the freeze in fuel duty. Haulage and coach businesses are essential to economic growth, but with operating costs increasing and margins tightening, the last thing these vital businesses needed was a rise in fuel duty.
“Fuel prices continue to put a massive strain on budgets, with diesel prices higher here than in any EU member state. More could still be done to support these businesses, the essential users of diesel for whom no other affordable choice of fuel exists. This support would go some way to reducing some of the pressures that have driven consumer prices higher.”
David Lonsdale, director, Scottish Retail Consortium:
“Scotland’s retailers will face a £190m increase in their tax bill following the Chancellor’s announcement that employer national insurance contributions are to rise. Combined with increases in the statutory wage rates, it’s clear retail businesses will see big rises in the cost of employment, whilst there was little sign of any significant reform to non-domestic rates. Such stark increases will increase the cost of operating a retail business and are unlikely to be absorbed by businesses, at a time when Scottish retail sales are flatlining, making it likely those costs will be passed along to consumers.”
Clive Black, head of consumer research, Shore Capital:
“Rachel Reeves has delivered her first budget, and it was the £25bn of funds to be raised from employers’ NIC that catches the eye; alongside leaked increases in the national living wage, which means UK labour is being further upwardly repriced. Wage rises should feed into household spending and, if inflation remains manageable, raise living standards.
“However, it will be the cost recovery programmes and ongoing evolution of labour process at the firm level that will be key to ongoing corporate earnings, alongside the CPI and employment market impacts. Largely leaked wealth taxes will feed through in time as will c£100bn of capital investment. With gilt yields ticking up following a calm initial reaction, we watch on with caution, though are encouraged to see little movement in Sterling. All in all, post-budget, we remain cautiously optimistic for the UK consumer economy in 2025 with the above caveats in place.”
Michael Shapiro, commercial real estate partner, Spencer West LLP:
“For those in the retail and hospitality sectors, the cost of business rates is becoming prohibitive, and this is one of the major causes of so many high street units and pubs being empty. Anything that is giving support is welcomed. Whilst the business rates system needs a complete overhaul, this is at least a positive start.”
Will White, sustainable farming coordinator, Sustain:
“We welcome the government’s commitment to maintaining funding for Environmental Land Management (ELM) schemes. Prioritising the effective rollout of these schemes is the best way for the government to meet its environmental improvement targets while supporting long-term, resilient food security. While there is still much room for improvement in ELM schemes, this budget marks a promising step forward for the future of farming and nature.
“Now, it’s crucial that Defra focuses on easing the application process and ensuring quick payments to ensure that farmers can access funding swiftly.”
Adam Barnfield, head of business rates, Vail Williams:
“The government’s announcement on business rates will make disappointing reading for high street businesses as it fails to live up to many of the government’s manifesto commitments to overhaul the system and create an ‘even playing field’ with online retailers. Rates relief will fall to 40% (from 75%) up to a cap of £110,000 from April 2025, meaning that many businesses could find their rates effectively doubling next year. This is a far cry from the rates cut many were hoping for and will be challenging for retail and hospitality companies, some of which are still feeling the legacy of Covid and the cost-of-living crisis. Earlier this month, the British Retail Consortium published a letter signed by 71 CEOs which called for an immediate reduction to business rates relief. While the freeze on Multipliers for small businesses is to be broadly welcomed, the change to business rates announced in the Budget is not great news for businesses with high value properties either. From April next, an increased Multiplier will be applied to the ‘most valuable’ properties, although it is not yet currently clear what this rate will be or how many businesses this will apply to.”
Angela Francis, director of policy solutions, WWF:
“Rachel Reeves pledged to be the UK’s ‘first green Chancellor’ but, despite some positive signs, investment in climate and nature isn’t yet at the scale needed to fully earn that title.
“We know that green investment is the only way to unlock sustainable and sustained growth, shield households from high energy bills, and restore our environment.
“While we welcome commitments to new fiscal rules to enable more investment, further concrete policies will be needed to drive green investment and lay the foundations of an innovative modern economy, including on the future of nature-friendly farming, which is central to making that growth resilient.”
Simon Dodd, CEO, Young’s:
“We are pleased that the government has decided to cut draught duty, which is a small step towards reducing the huge tax burden faced by our industry. Unfortunately, given the other measures announced today, there are many more snakes than ladders for the hospitality sector, a vital industry for the communities we serve and the country’s economy as a whole.
“The Chancellor says she wants to stimulate growth, so do we. We are pleased that the government has listened and committed to supporting hospitality through reviewing business rates, but this needed urgent reform especially when costs are increasing substantially next year. The can has been kicked to 2026-2027 before we get certainty and real change. We need the government to deliver on this promise, which has too often been swept under the carpet and ignored.”“
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