Will the new budget deliver boom or gloom?
Ahead of the government’s Spring Budget being announced on March 26, we asked some of this publication’s trusted professional experts to comment on what they would like to see in the Chancellor’s latest economic plans. Read on to learn more…
PROPERTY:
Deborah Richards, Founder, Maddisons Residential
“There is not the same sense of unease towards the upcoming spring budget”
When Chancellor Rachel Reeves, announced the discovery of the £40 million ‘Black Hole’ last year, there was accompanying unwelcome news that the Autumn Budget would contain punitive measures to address the shortfall. The property market held its breath, fearful of where the Chancellor’s scrutiny would fall. And we did see some historic changes. These included agricultural farms above a certain value would no longer be free of inheritance tax, and anyone purchasing anything other than their principle private residence, would need to pay even more stamp duty. Thankfully, Capital Gains Tax rates on selling a second property did not change.
With many buyers keen to beat the deadline of the higher stamp duty allowances, there is not the same sense of unease towards the upcoming spring budget. There is always a desire to help first time buyers access the property market, which the increased stamp duty levels did well, so I would love to see this addressed once more – but I think that is highly unlikely! Equally, I hope that landlords are encouraged to hold their private rental stock, with Capital Gains Tax rates held at their current level, and indeed tax incentives introduced. There is an extreme shortage of good rental stock, which is only pushing rental prices ever higher. However, with the backdrop of so much change over recent years, the overwhelming sentiment of the industry is that it simply must not become even harder and expensive for people to buy or sell a property.
EMPLOYMENT
Neil Simmons, Director, TN Recruits
“Balancing various factors so businesses can expand will be crucial”
The upcoming Spring Statement on 26 March 2025 is poised to introduce several measures that could positively influence recruitment, particularly for small businesses.
Increased Employment Allowance: The government plans to raise the Employment Allowance from £5,000 to £10,500 and remove the £100,000 cap. This change will enable eligible employers to hire up to four full-time employees on the National Living Wage without incurring employer National Insurance contributions, effectively reducing the cost of recruitment for small businesses.
Extension of the Seasonal Worker Scheme: The announcement of a five-year extension to the UK’s Seasonal Worker Scheme aims to address labour shortages in sectors like agriculture. This initiative is expected to provide a more stable and predictable workforce, benefiting industries that rely on seasonal labour.
While these measures offer potential benefits, it’s important to consider them alongside other proposed changes, such as increases in employer National Insurance contributions and the National Living Wage, which may impact overall employment costs. Balancing these factors will be crucial for businesses aiming to expand their teams in the coming year.
FINANCE
Danielle Friend, Founder of Create Balance Accountants
“Market confidence is at its lowest ebb for two years”
It has been a difficult few months following the Chancellor’s seismic – and incredibly controversial – changes which include the increase of National Insurance Contributions for employers, affecting hospitality and single Director businesses in particular. This, coupled with reducing spend in general, is quite a bitter pill to swallow for businesses – of all sizes. I would be lying if I said the current government is hurting pretty much every commercial sector right now. But would an alternative party do better?
Personally, Rachel Reeves’s budget feels anti-business and anti-aspirational in terms of running our country’s finances, but with a massive black hole to fill, options are limited. Market confidence is at its lowest ebb for two years and support for households and businesses is very much needed. So, on March 26, will the Chancellor pull a rabbit out of a hat – or will it be another nail in the coffin of entrepreneurship? All of that remains to be seen…
HUMAN RESOURCES:
Gemma Farina, Managing Director, GFHR
“We need real investment in small businesses including tax incentives, hiring and support”
As an HR consultant working closely with small businesses, I know firsthand how much they contribute to the UK economy. But right now, many are feeling the pinch with rising costs, National Insurance (NI) increases, and the challenge of keeping good employees while affording higher wages. That’s why I’m hoping the upcoming Budget brings real, practical support to help them not just survive, but grow.
One big concern is the NI increase, which could make hiring more expensive and put small businesses off from expanding their teams. A reduction in employer NI contributions or some form of relief would make a huge difference, allowing businesses to keep hiring rather than cutting back.
Beyond that, we need real investment in small businesses. Tax incentives, hiring support, and funding for training could help owners bring in the right people and up-skill their teams. The more support we give small businesses now, the more we help them grow into the big employers of tomorrow.
Small businesses take risks every day to create jobs and drive the economy forward. Let’s hope this Budget Statement gives them the backing they need to keep doing just that!
HOUSING:
Tara de Linde, Director and Architect at Atelier de Linde
“The Chancellor has an opportunity to boost economic growth”
With the upcoming Budget on March 26, the architecture and construction industries will be watching closely for measures that support sustainable growth, housing delivery, and infrastructure investment. The UK faces a pressing need for policies that accelerate planning reform, improve housing supply, and incentivise sustainable design.
A key priority should be streamlining the planning process. Delays and uncertainty hinder development, particularly for small and medium-sized practices. A commitment to faster decision-making and clearer guidance on net-zero building regulations would provide much-needed clarity.
Investment in green infrastructure is also critical. Expanding funding for retrofitting existing buildings, enhancing energy efficiency grants, and supporting low-carbon materials could significantly reduce the built environment’s carbon footprint. Additionally, we hope to see further support for modern methods of construction (MMC), which improve efficiency and sustainability.
Tax incentives for SMEs in architecture and construction would encourage innovation, allowing practices to invest in technology and training. The Chancellor has an opportunity to boost economic growth while ensuring that development aligns with environmental and social priorities. We hope to see bold, long-term strategies that support both the industry and the wider economy.
