After much anticipation, the Chancellor delivered the Budget on Wednesday (26th) and businesses across the country are already weighing up the implications.
For local businesses across Staffordshire, it will be seen as something of a mixed bag, with both opportunities and challenges.
We handed in our Budget submission during October and our overriding message was a call for no more taxes on business. It therefore came as something of a relief to see that the Chancellor has listened and decided not to add any major new taxes on the business community, many of whom are still reeling from some of the 2024 Budget announcements.
The rise in the minimum wage will be another cost burden for businesses. Throughout 2025, feedback from our Quarterly Economic Survey (QES) has consistently cited labour as the most pressing cost issue for businesses. There are also concerns on proposed Budget changes to salary sacrifice schemes.
Charging drivers of electric vehicles may deter motorists from making the switch to an electric vehicle, although we welcome further support to enhance public charging infrastructure. When driving an electric vehicle, range anxiety can be addressed through planning ahead for recharging but having more choice of charging infrastructure in place, is a positive move.
With so many energy intensive businesses struggling to cope with soaring energy costs, it was disappointing to note the lack of any measures which could ease some of these cost pressures.
Permanently lower business rates for hard pressed retail, hospitality and leisure firms, will be a step in the right direction but these sectors (particularly hospitality), will need more support. Staffordshire Chambers’ of Commerce is planning to launch a hospitality forum in the New Year. This will be open to Chamber members in the hospitality sector or businesses with an interest in driving the sector forward. Places can be booked here:
Hospitality Forum – Staffordshire Chambers Member Zone
Looking ahead, we will welcome more clarity on transport and infrastructure commitments. Our particular focus is on the need for investment in the A50/A500 corridor, which could help to unleash the economic potential of this nationally and regionally vital road artery, which carves through the county.
