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"A month on from Labour’s Autumn Budget and the cracks are showing"

ended 26. November 2024

Tomorrow marks one month since Labour's Autumn Budget. Newspage asked a selection of business owners from all sectors for their thoughts four weeks on. One said: “A month on from Labour’s Autumn Budget and the cracks are showing.” A second added: “The Budget left many bemused and quite a few more angry. Growth will be lower, goverment spending higher, tax take lower. There is a lot more pain to follow.” A third said: “A month in and the Budget has created huge uncertainty.” The views of 11 business owners are below.

10 responses from the Newspage community

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Rohit Kohli
Director at The Mortgage Stop
One month on from Labour's Budget, the mortgage and property market feels far from a winter wonderland. Borrowers are left out in the cold, wondering why the Bank of England’s base rate cut hasn’t brought the gift of lower mortgage rates. Instead, fixed rates have been climbing, and the Budget’s stamp duty changes have turned up the heat on small amateur landlords. Many are offloading properties, while first-time or would-be landlords have shelved plans, unable to afford entry costs. The ripple effect is hitting tenants hardest. Those hoping to buy properties sold by landlords are finding them out of reach, forcing many to search for new homes. Buyers and homeowners alike face a frosty landscape of rising costs, unclear policies, and global tensions that have frozen confidence in the market. The Budget promised stability but delivered a lump of coal in the stockings of households and businesses alike.
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Mr Owrang Rahmani
MD at Credius Wealth
The Budget left many bemused and quite a few more angry. As a senior business leader I spoke to recently put it, "Labour are wolves in sheep's clothing, I feel duped". Economic growth is certainly not on the cards. Employers I speak to are all looking at ways to reduce headcount to make up for higher National Insurance costs. No-one is talking about recruitment or investment. Housing has slowed down. Interest rates have nudged up as a result of the inflationary impact of all the increased spending announced. Overall, the takeaway is that further pain will be needed as these policies are ill-thought through and out of touch with reality. Growth will be lower, goverment spending higher, tax take lower. There is a lot more pain to follow.
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Keith Budden
Managing Director at Ensurety
The general mood among business owners is resigned depression and a sense of weary acceptance.The Budget imposed some unexpected costs on business, specifically the lowering of the NIC threshold, and this, combined with the changes to the Living Wage, have left businesses in a position to either increase prices, which is hard to do amid a cost-of-living crisis, or suck it up, or a combination of the two. Add to that the increased inheritance tax on passing on a family business (don't even get me started on farmers) and it's not hard to see why businesses are despondent. I'm just hoping that this is all of the bad news out of the way and we are on the path to sunny uplands. I can't help feeling, though, that the path ahead is full of potholes.
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Peter Lawrence
HR Consultant / MD at Peter Lawrence
A month on from the Budget and we are left with huge uncertainty. Many of our clients are deeply concerned about the increased costs of employing people including the increase in employer's NI and further increase in the National Minimum Wage. These changes, together with enhanced employee rights, including rights from day one, have drastically shaken the sentiment around employment and are making smaller firms nervous about recruiting new staff.
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Michelle Lawson
Director at Lawson Financial
One month on the ripples and aftermath of the Budget are still rearing their disastrous and ugly heads. This will feed into upcoming data as time progresses. The Budget was unpopular at the time and is still unpopular as well as restrictive to business and growth. The new Labour Government have created more enemies than friends in their time in office. They had few at the start and got lucky as the least worst option as people wanted change. They have been consistently economical with the truth and lost public trust quicker than any other. They have more than a mountain to climb in every single way. The property market is struggling due to higher interest rates, a further rise since the Budget let alone the increase in Stamp Duty. The situation is close to dire.
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Chris Barry
Director at Thomas Legal
We have seen a circa 10% drop in new enquiries for buy-to-let since the Budget, however this looks to be offset by first-time buyers and home movers looking to secure a home prior to April when SDLT is set to increase. The property market should see a further wave of new enquiries just after Christmas as buyers who were waiting for the Budget now have some certainty, together with those who are becoming increasingly aware of the stamp duty rise in April.
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Elliott Culley
Director at Switch Mortgage Finance
There is naturally concern over the rise in stamp duty which is set to rise at the end of March. Some borrowers have not budgetted for this and will be desperate to complete before it changes. As rates have increased, due to the budget, we have seen some interest in the market wane as higher potential costs have changed the mindset of some would be homeowners to delay thier plans for a little while longer.
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Patricia McGirr
Founder at Repossession Rescue Network
The promises of growth mask a surge in wealth erosion. A month on from Labour’s Autumn Budget and the cracks are showing. Behind Rachel Reeves' ambitious rhetoric lies a growing unease among small business owners and investors who are increasingly asking, 'How do we protect what we’ve built?' The policies touted as 'growth-focused' are quietly draining wealth and sparking defensive strategies across all sectors. The sentiment is clear; cautious, uncertain, and skeptical. Labour's promises may have grabbed headlines and won the election, but on the ground, optimism and trust is in short supply.
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Iain Swatton
Director at Exemplar Financial Services
Labour’s first Budget was pitched as a recipe for growth but has left many feeling like the soufflé collapsed before it hit the table. Inflationary pressures are up, lenders are hiking rates despite a base rate cut, and businesses are rethinking expansion plans thanks to higher costs. While Rachel Reeves likely intended a bold reset, the mix of policy missteps and lingering doubts about execution has left some questioning if this was economic strategy or just a case of too many cooks in the kitchen.
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Emily Miller
Director at 4Zero Marketing Limited
As a business owner, the recent increase in National Insurance presents a significant challenge for small businesses like ours. These changes inevitably place pressure on operational budgets and long-term planning, particularly for newer businesses like ours seeking to grow and expand their teams. However, despite these concerns, we’ve observed a growing trend of companies looking to outsource key functions like marketing instead of committing to in-house hires. This shift aligns well with our services, as we provide a flexible, results-driven alternative that helps businesses maintain strong marketing output without the overhead of full-time staff. While the broader economic environment remains uncertain, we’re optimistic that our ability to adapt and deliver value to our clients will position us for continued growth.