‘Punished in every way’: British firms say they’ll be worse off after the Budget
Most British businesses expect to take a hit from last week’s Budget in a damning verdict a week on from John Healey’s inaugural set-piece fiscal speech. As much as 52 per cent of firms expect their business to be worse off as a result of policies announced in the Budget, while one in five say [...]
The recent Budget has left most British businesses dreading their financial future, according to a new survey. A staggering 52% of firms anticipate being worse off after the policies announced, with a mere 10% expecting an improvement. The minimum wage hike emerged as the most significant financial blow, affecting a third of respondents, followed by higher taxes on savings and property income, and changes to business rates.
Respondents expressed frustration, with one stating that the government's actions punish businesses in every way, with risk outweighing reward. Over half of the surveyed businesses (42%) plan to raise prices, while 33% said they would cut costs like staff hours, and 27% will delay investments or growth plans. Only four percent plan to invest or grow more than initially intended, highlighting the lackluster response to the Budget.
Small businesses expressed negative sentiments, with Damian Brychcy, CEO of Capital on Tap, noting that the Budget has unsettled the sector but they are bracing themselves rather than expanding. The UK's fiscal watchdog has revised economic growth for 2026 down to 1% from the previous estimate of 1.6%, with wage growth expected to turn negative, and welfare spending continuing to rise as a share of GDP.
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