Denise Walker, Founder, Glenville Walker Solicitors, said:
“This week’s Budget tells us one thing clearly – business owners need to plan for a prolonged period of fiscal drag and mounting cost pressures.
“The headline story isn’t what changed, it’s what didn’t. Employers’ National Insurance stays at the increased rate from last year’s Budget – that 15% rate and £5,000 threshold we’ve been managing since April. But the income tax threshold freeze extending to 2031 means more business owners will be pulled into higher tax bands as their salaries rise, even if they’re just keeping pace with inflation.
“Also, by raising minimum wage (yet again) the government increases its tax and NI contributions from both the employer and the employee whilst portraying itself as ‘working people’ focused.
“What matters most for owner-managed businesses is understanding the cumulative effect. Last year’s NI increases are still feeding through to wage costs and we have seen an increased number of insolvencies possibly as a result of this together with a drop in job availability in the general marketplace. Neither of those two things promote growth for obvious reasons.
“This year’s tax threshold freeze means the salary-dividend balance for business owners may come into sharper focus. The new council tax surcharge on high-value properties affects business owners who’ve built wealth through property investment. Also, it will encourage wealthier people who can go offshore, to go offshore.
“The Cash ISA cap dropping to £12,000 per annum from April 2027 (for those under 65 years of age) changes the planning conversation for business owners looking to build personal tax-efficient reserves outside their companies.
“This may cause a shift of thinking towards stocks and shares ISAs but, can the current financial climate be considered stable enough for investments of this nature, which are being encouraged by the government, or, could a stock market crash be on the cards?
“Business owners may consider putting more money into their pensions, but the IHT changes made in the last Budget, makes funding pensions at a high level less attractive, if you ultimately wish to leave substantial wealth to your children. Even pension contributions through salary sacrifice have been capped to £2,000.00 per annum.
“Here’s what’s actually helpful: the continued freeze on fuel duty benefits businesses with distribution costs, and the business rates relief for smaller hospitality and retail operations provides genuine breathing room for those sectors.
“The OBR’s downgraded productivity forecasts and higher inflation predictions mean we’re looking at slower growth and continued cost pressures. Business owners can’t control macroeconomic trends, but they can control how they respond.
“Our view is that business owners should start to review their remuneration strategy now that they understand the tax landscape through to 2031. They will be best pleased to look at their investment and saving structures – the ISA changes give them 18 months to adjust. If any business owner is planning an exit or succession, they should factor in that the wider economic picture suggests sustained caution from buyers and investors.
“Generally, there isn’t much in the Budget to help business owners and it seems all of the lob in undertaken by business owners has fallen on deaf ears. The government was elected on the basis of its ‘growth plan’ and there was a lot of talk about growth in the initial phases. Basically, what they have done is stifle growth and are continuing to do so. At the same time, they have increased public spending without any regard to restructuring the massively inefficient mammoth enterprises that waste vast amounts of taxpayer’s money on a daily basis. If those entities were private entities, they would have been restructured a long time ago, but we seem to be ignoring the elephant in the room.
“The Government has always stated that it will look after “working people” but it seems to me that owners of businesses are not classed as working people. It is ridiculous to treat them as other than working people because most smaller businesses were started by one or two individuals who worked very hard to achieve success and in achieving that success, they created jobs for many others.
“The majority of the Country’s businesses are smaller businesses (I think it is about 98%) and these should not be overlooked by the Government as they are the backbone of the UK economy.
“This wasn’t the dramatic Budget some feared, but it seems it’s cemented a reality owner-managed businesses have to accept, higher taxes, frozen thresholds, and slower growth are the environment we’re operating in. Success will come to those who adapt smartly.”
Greg Johnson, chief executive of Bootle window and door manufacture Warwick North West, said:
“We often talk about whether a Budget is business-friendly. First impression of this Budget is that it really isn’t.
“As well as the extra tax on dividends, which will impact how entrepreneurs assess risk, businesses are also having to grapple with upcoming rises in the minimum wage.
“I’m not against the minimum wage in principle but it is also important to understand that each time it goes up, especially if the rise exceeds inflation, that is a significant extra cost for any employer.
“People are our best asset, but they are also our biggest cost. At a time when other costs are going up across the board the Chancellor needs to be careful that these rises don’t actually end up leading to fewer jobs.”
Overall, Greg was underwhelmed with the Budget, adding: “I read this week how Budgets in recent years have seen lots of smaller measures but fewer big ideas of the kind we saw from Chancellors such as Gordon Brown. That really hit home today.
“Where is the vision? It feels like the UK economy is drifting and there is a lack of an overarching narrative. I speak to other business people every day and I’m always struck by the drive and energy. People want to grow and create jobs and prosperity.
“Government needs to be creating the optimum conditions for that to happen but whether today’s announcements are good or bad, it just feels like we are nibbling at the edges. There needs to be a clear narrative but, right now, I’m not seeing one.”
2025 Chamber ‘Liverpool Legacy’ Award winner, Gregory Abrams, founder of Liverpool law firm Gregory Abrams Davidson, said:
“The Chancellor’s reduction in business rates for hospitality and retail businesses was much-needed.
“This move will see a reduction for around 750,000 small businesses across the country. It will be funded by an increase on premises worth more than £500,000, such as warehouses used by online retailers.
“Liverpool city region’s hospitality sector has had a torrid time,” said Gregory. “Costs have risen while consumers have been tightening their belts. So right now they need all the help they can get.
“Our high street outlets are facing the biggest challenge since the pandemic so this measure won’t solve their problems but it will give some respite.
“The Chancellor’s decision to allow Steve Rotheram to introduce a tourism levy is an interesting one. Of course, the Liverpool Accommodation BID have already introduced a £2-a-night charge for overnight stays from this summer.
“This new levy will cover the whole of the city region and will hopefully raise millions to support our visitor economy. I was around to see the renaissance of Mathew Street in Liverpool and our headquarters is still based there.
“I see every day how many visitors come to the Cavern Quarter from all over the world every day. Tourism is big business for Liverpool city region and if we can raise millions more to improve our offer then that is to be welcomed.”
2025 Chamber ‘Innovation in Technology’ Award winner, Dean Rogers, managing director of Liverpool construction and fire safety specialist, Frank Rogers, said he was pleased to hear of changes to training for young people. He has spoken this year about the need to inject more skills into the building sector.
Rachel Reeves said a new Youth Guarantee will give £820m towards trying to guarantee every young person a place in college, an apprenticeship or personalised job support. After 18 months,18-to-21 year-olds will be offered paid work instead of benefits.
Since the apprenticeship levy was introduced in 2017, only large employers with a payroll in excess of £3m pay into the levy at a rate of 0.5% of salary costs. The contributions go towards funding all parts of the apprenticeship system.
SMEs then make a co-investment payment of 5%. In 2024, the Conservatives scrapped the 5 per cent co-investment payment for SMEs when they hire an apprentice under the age of 22. Reeves will extend this co-investment relief to those aged 22 to 24.
“Recruiting and finding people with the right skills remains a constant challenge for Frank Rogers and others in our sector,” Dean said. “Bringing young people in at entry level is an effective way to build a skilled workforce, but it does come with both cost and risk.
“Many construction businesses are still feeling the impact of last year’s Budget and the financial pressure it created.
“These new measures will go some way towards alleviating pressure and make it easier and more cost-effective to hire young people. We can fill those skill gaps and give young people the chance to make a career for themselves.”
“However, at the same time, the Chancellor has increased pressure on businesses by raising the minimum wage and taxes on dividends.
“She acknowledged that building roads and homes is vital to Britain’s economic growth — yet for labour-intensive companies like ours, rising wage bills mean the strain on the construction sector is still significant.
“The Chancellor needs to strike the right balance between raising essential revenue and avoiding policies that discourage business investment.”
John-Paul Dennis, partner and divisional director of private client at law firm Jackson Lees, said:
“The Chancellor’s latest budget promises £26bn in extra revenue by 2029-30, but behind the headline figure lies a patchwork of stealth taxes, symbolic surcharges and new levies that will reshape the financial landscape for private clients.
“The biggest single measure is the freeze on personal tax and employer National Insurance thresholds, raising £8bn. It’s taxation by inertia – as wages rise, more earners are dragged into higher bands. A stealth tax at its most cynical.
“Next comes pensions. Taxing salary‑sacrificed contributions will claw back £4.7bn, but at the cost of discouraging long‑term saving. For years, salary sacrifice was a rare tool to boost retirement pots tax‑efficiently.
“Removing it is short‑term gain for the Treasury, long‑term pain for savers. Added to last year’s pension reform which drags pension pots into the inheritance tax net, treating them as part of the taxable estate on death, this just seems cruel.
“Investors are also in the crosshairs. A two percentage point hike on dividends, property and savings income raises £2.1bn.
“Landlords, small business owners, and retirees relying on investment income will feel the squeeze.
“At a time when private capital is needed most, this risks dampening appetite or inward investment.
“Electric vehicle drivers, once incentivised, now face a mileage‑based charge from 2028. Worth £1.4bn, it replaces collapsing fuel duty revenues. Logical, perhaps, but politically risky – punishing those who went green could spark a backlash.
“Finally, the so‑called ‘mansion tax’ – a council surcharge on properties worth over £2m.
“At £400m, it’s more about optics than revenue. Families in London and the south east may find themselves taxed on paper wealth rather than income. It will also further affect business owners and farming families who have already seen huge reductions in business and agricultural relief from inheritance tax.
“The ‘mansion tax’ will be collected via council tax payments on properties above £2m from 2028. To summarise, this hurts everyone and does little to encourage the growth that the government desperately needs.”
Sean Keyes, CEO, Sutcliffe, said:
“How will we hit the 1.5m home target?”
“I would ask how we will hit the 1.5m home targets that will ultimately improve health, education and financial inequalities in the UK? For those in the construction sector this is a major pillar of our future.”
“The Chancellor speaks of growth and stability, businesses are left wondering how we’re meant to deliver it when employment costs have just been substantially increased. The last budget saw a 1.2% rise in employer National Insurance, combined with a £4,100 drop in the threshold and a 6.7% increase in the National Living Wage, represents a significant hit to labour-intensive sectors like construction – precisely the industries expected to deliver the government’s ambitious housing and infrastructure targets.
“Make no mistake, these costs don’t simply disappear into company accounts. After 40 years in this business, I can tell you exactly what happens: firms will have to make difficult choices about recruitment, pay rises will be constrained. For a construction company employing hundreds of people, we’re all looking at substantial additional costs.
“You cannot simultaneously increase the cost of employment whilst calling for economic growth. This Budget makes that harder, not easier.”
