Four in five business leaders react negatively to Budget

A snap poll of over 500 business leaders following the Chancellor’s Budget Statement by the Institute of Director has found that 80% feel negative about the Autumn Budget. A similar snap poll of business leaders following the 2024 Autumn Budget found that 67% felt negative.

In terms of the individual policies announced by the Chancellor, those viewed most negatively are the £2000 cap on salary sacrifice into workplace pensions (by 78% of respondents). Reducing the writing down allowance main rate in corporation tax (66%). Freezing tax thresholds on employer National Insurance contributions (66%) and an increase in national living and minimum wages (58%).

The individual policies viewed most positively are funding to make under-25 apprenticeships free for SMEs (54%) and providing a new three-year stamp duty holiday for firms that list in the UK (37%).

Anna Leach, Chief Economist at the Institute of Directors, said “This Budget has landed badly with business leaders. Four-fifths rate it negatively, citing in particular the further increases in national insurance and the minimum wage, and an increase in the effective rate of corporation tax. Firms are telling us that this will hit hiring and investment intentions further, with many also planning to review their pension arrangements. Although the additional funding for SME apprenticeships for the under-25s and the stamp duty holiday for listings were both welcomed, they were not judged to be of sufficient scale to offset the negative impacts from elsewhere. After a prolonged and messy Budget period, businesses remain unconvinced by the government’s growth strategy.”

How do you feel about today’s Budget and its associated announcements?

Very positive	2.0%
Somewhat positive	7.7%
Neutral	10.5%
Somewhat negative	31.0%
Very negative	48.9%