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 | Yorkshire Times A Voice of the Free Press |
2:38 PM 26th November 2025
business
2025 Budget Response
Mike Parkes, technical director at GoSimpleTax, said:
“With resounding backing for businesses, the four-million-plus self-employed people may be feeling like there wasn’t much good news or support. There was a clear message that those working in the gig economy need to ensure they are submitting accurate information and paying tax owed as a significant HMRC compliance package will clamp down on bad behaviour to reduce the tax gap.
“No rise to fuel duty will be good news to many who work for themselves and rely on vehicles - unless they use electric cars which will see higher motoring costs. But the basic and higher rate thresholds for income tax freeze for three years will bring more self-employed people into the income tax net. Extending this freeze to the end of the Parliament could generate substantial additional revenue through fiscal drag as incomes continue to rise - but leave individuals worse off and with higher tax liabilities.”
Changes for landlords
“A 2% increase in income tax on investment income from property may have caught landlords by surprise, who are already facing increased compliance around Making Tax Digital for income tax.”
Self-employed people and landlords must get clarity to see where they stand
“Our advice for self-employed people is to get clarity to see where they stand. Understand what you earn from self-employed income and salary and make sure you account for your expenses.
“For self-employed people and landlords, this Budget comes at the same time HMRC is sending out more than 200,000 letters to people who will be impacted by changes to the tax system in April next year.
“With only five months to go until sole traders and landlords with qualifying income over £50,000 will be required to use Making Tax Digital (MTD) for Income Tax. HMRC has advised that customers will need compatible software that can give you real-time estimates of your tax bill throughout the year, helping with cash flow planning and taking the pressure off an annual self-assessment return.”
James Walton, Chief Economist at grocery insight charity, IGD covering what it means for food inflation, impact on shopper behaviour and food & drink businesses.
This has been a tough Budget for shoppers, with Government needing to raise significant sums of money, taking taxation to record levels. IGD expects food inflation to persist into 2027, with government policy contributing about a third of this pressure. Food inflation will run ahead of overall inflation, making food relatively more expensive. Therefore, food shoppers will remain extremely cautious and reluctant to spend and the operating environment for food businesses will remain extremely difficult. The next few years will be characterised by weak volume growth and tight profits across retail and away from home.
It’s clear there’s no immediate relief on the horizon for consumers or businesses. The increased taxation will slow volume growth which means less investment for the future resilience of the food system. There are opportunities for growth out there and targeted policy changes could unlock this, especially in horticulture and poultry. These changes could release £5bn of investment and create 60,000 jobs, and that means genuine economic progress. Our recent Viewpoint report, Driving Growth Through a Thriving Food System, sets out how the food industry can be the growth engine the UK urgently needs.
“The government’s growth mission is currently stalled. While the Chancellor has succeeded in creating the fiscal headroom she needed, a scattergun approach to tax risks leaving the economy stuck in neutral.
“Adding national insurance to salary sacrifice pension contributions curtails savings and pushes up the cost of employment. Coming on top of the rise to the National Living Wage, increased employment costs make it even more expensive for employers to offer jobs to young people and jobseekers.
“The government should be commended for protecting capital spending, boosting innovation, sticking with the corporate tax roadmap, and hiring the planning officers business asked for. But business will still rue a missed opportunity to be bold and press on with much needed tax reform, simplification and alignment of incentives to catalyse business investment and job creation.
“With business investment and profitability weaker as a result of these decisions, the government must now double-down on leveraging the experience and expertise of enterprise to find the step-change in economic growth that has proven elusive. One of the biggest things the government can do right now is get round the table with business to find a landing zone on the Employment Rights Bill that works for everyone.”
I’m delighted the Government has done the right thing and scrapped the two-child benefit cap, which will lift more than 30,000 children out of poverty in West Yorkshire and boost the life chances of those who need it most.
This budget also marks a major milestone in our region’s devolution journey, with an integrated settlement giving us more control over our decisions and greater funding to invest in housing, transport and skills – helping us deliver on our ambitious growth plan.
In addition to listening to Mayors’ calls for a visitor levy, introducing the Leeds City Fund and committing to Northern Powerhouse Rail, the Chancellor has taken the fair and necessary choices today in order to shore up Britain’s future tomorrow.
“Today’s budget looks like the final nail in the coffin for the Conservative’s failed austerity project.
“Key public services, essential national infrastructure, and communities across the UK suffered deep wounds because the Tories made the wrong economic choices - we must never go back to those dark days.
“The challenge for Labour is to grip the task of rebuilding our economy and country, lock in essential investment to create growth, and start bringing a bit of hope to people.”
Responding to the Autumn Budget Statement delivered by the Chancellor of the Exchequer, Anna Leach, Chief Economist of the Institute of Directors, said:
“Whilst this Budget further increases the tax burden on business, it is partially offset by some helpful measures.
“We welcome the funding for the Youth Guarantee and the full funding of SME apprenticeships for those eligible under 25, which will support young people in their careers. The decision not to converge the two rates of Landfill Tax will also be a relief to the construction sector.
“We also welcome the more than doubling of the headroom against the fiscal rules. This will help calm the frenzy of speculation which has surrounded fiscal events. The decision to only assess performance against the fiscal rules once a year may also contribute to greater stability in policy making. But the leaking of policy choices in the run-up to this Budget is of grave concern. It has contributed to substantial declines in business and consumer confidence, with real impacts on economic activity.
“This Budget does not substantively change the UK’s growth outlook, however – the OBR judge that none of the policies announced have a material impact on GDP. Public spending is higher, and business investment even lower than before. The scaling back of National Insurance relief on pension contributions – even while the government has launched its Pension Commission – will undermine retirement savings and the very investment pools that we need, as well as heaping further costs on employment.”
This year’s Budget maintains elevated capital spending throughout Parliament and outlines reforms intended to stimulate entrepreneurship, attract investment and strengthen the UK’s research and innovation landscape. It also confirms further changes to the R&D system and continued progress on the government’s Modern Industrial Strategy, alongside steps to streamline regulation and bolster skills and business investment.
Dr Joe Marshall, Chief Executive of NCUB, said:
“Today’s Budget reinforces the UK’s commitment to growth. Protecting long-term investment and backing innovation sends an important message at a time when productivity forecasts have been revised down and the need for stronger growth is evident. The government has remained consistent, keeping capital investment at historically high levels and taking further action to remove barriers that slow progress.”
“Universities and businesses recognise that the UK cannot depend on incremental change. They are central to generating the ideas, skills and technologies that will drive the next phase of economic renewal. Targeted support for entrepreneurship, investment in scaling companies, and reforms to the R&D system are welcome steps. The intention is clear: future investment will be more tightly aligned to national priorities and to building the leading companies of tomorrow, while sustaining the research excellence and collaboration that underpin long-term competitiveness.”
“As the UK moves towards a more mission-driven and outcomes-focused approach, delivery will be decisive. Businesses consistently tell us that the UK often has the right ideas, but execution has not always kept pace. Success will rely on the whole ecosystem functioning effectively, not only policy reform but strong, innovative universities able to partner with business and drive skills, investment and regional growth. NCUB will continue to work with government, industry and the research community to ensure that reforms translate into real-world impact, turning world-leading research into innovation, and innovation into productivity and growth.”