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What business owners DO NOT want to see announced in the 'Halloween' Budget

ended 22. October 2024

With the Autumn Budget fast approaching, Newspage asked small business owners from all sectors what the ONE thing the Chancellor could announce that they categorically do not want to see. Their concerns ranged from making private pensions less tax-efficient and introducing changes to CGT to dividend taxation, gimmicky new "support" around housing and simply delivering an unfunded Budget.

One, Mogens Rye, Founder at Rye Outsourcing, said: “For the Bank of England to do their part and continue the rate cut cycle, it is imperative that the government delivers a fully funded Budget. The one thing I would not want to see is a return to unfunded expenditure.”

Another, Faisal Sheikh, Managing Director at Monmouth Capital, commented: "Don't, whatever you do, make pensions any more complicated than they already are. It really is that simple. If you do, you risk alienating even more people from saving for their futures."

A third, Keith Budden, Managing Director at Ensurety, said: "One thing I would not like to see in the forthcoming Autumn Budget is any increase to the taxation of dividends, especially for small companies with less than £2 million turnover. Dividends used to provide a very attractive way for business owners to take reward for the risks they were taking, and any increase of dividend taxation could act to disincentivise people from embarking into the world of running a small business. That, in turn, will have a massive impact on this country's growth prospects."

Meanwhile, Sally Asling, Director at ProFind Property Recruitment, said: “I am very concerned about the whole property industry. Labour's reforms on the rented sector are driving out landlords.”

Freelance strategist Matthew Knight, added: “Whenever there's talk of increasing business taxes, there's little nuance to consider the impact this has on struggling microbusinesses and the self-employed, who are already taxed twice in the form of income tax and corporation tax and typically lack any protections such as sick pay, holiday pay, pensions or parental leave. I'd like to see more support for smaller businesses and sole traders, to rebuild the economy from the bottom up, supporting entrepreneurship and restarting the engine of growth, powered by the millions of people who are investing in the economy by creating new businesses and jobs.”

The views of small business owners can be found below.

20 responses from the Newspage community

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Matthew KnightVerified
Independent Strategist and Freelancing Advocate at Freelancing.Support
Whenever there's talk of increasing business taxes, there's little nuance to consider the impact this has on struggling microbusinesses and the self-employed, who are already taxed twice in the form of income tax and corporation tax and typically lack any protections such as sick pay, holiday pay, pensions or parental leave. I'd like to see more support for smaller businesses and sole traders, to rebuild the economy from the bottom up, supporting entrepreneurship and restarting the engine of growth, powered by the millions of people who are investing in the economy by creating new businesses and jobs.
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Faisal SheikhVerified
Managing Director at Monmouth Capital
Don't, whatever you do, make pensions any more complicated than they already are. It really is that simple. If you do, you risk alienating even more people from saving for their futures.
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Sally AslingVerified
Director at ProFind Property Recruitment
I am very concerned about the whole property industry. Labour's reforms on the rented sector are driving out landlords. They are pushing though the Rentors Reform Act but not consulting with lenders who are strict on criteria meaning the housing crisis in the rental sector is going to become horrific. With low numbers of social housing taking private landlords out of the market, this will create massive issues for the UK. My other concern is that taxing property sales further via stamp duty will slow the market right down. There needs to be reform in how we sell and buy property, not just adding layers of taxation to a broken system.
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Keith BuddenVerified
Managing Director at Ensurety
One thing I would not like to see in the forthcoming Autumn Budget is any increase to the taxation of dividends, especially for small companies with less than £2 million turnover. Dividends used to provide a very attractive way for business owners to take reward for the risks they were taking, and any increase of dividend taxation could act to disincentivise people from embarking into the world of running a small business. That, in turn, will have a massive impact on this country's growth prospects.
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Sam KirkVerified
Managing Director at J-Flex Rubber Products
Don't touch pensions without a plan. If Labour start taxing when you put into a pension then they need a damn good transition plan to ensure you don't get taxed again on withdrawal. They could end up messing up the whole thing by trying to pull in taxes for the short-term but leaving us in a mess down the line.
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Mogens Rye0
Founder at Rye Outsourcing
For the Bank of England to do their part and continue the rate cut cycle, it is imperative that the government delivers a fully funded Budget. The one thing I would not want to see is a return to unfunded expenditure. The Autumn Budget should be at least neutral on income and expenditure. The UK government needs to ensure potential bond buyers that the heydays of the Tories are well and truly gone.
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Stephen PerkinsVerified
Managing Director at Yellow Brick Mortgages
Aside from the fear of dramatic unconsidered changes being announced that could completely destabilise the economy and bring the property market to its knees, the main policy concern will be the expected Capital Gains Tax changes that will hammer another nail into the coffin of UK landlords.
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Justin MoyVerified
Managing Director at EHF Mortgages
Any meddling with Capital Gains Tax will probably be the worst decision the Chancellor could make in her budget. Penalising landlords even further, at a time when we need to encourage more social housing options, will just encourage a mad exodus of investors and put significant strain back on the Government. It could cost them more than the revenue any change will generate.
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Gabriel McKeownVerified
Head of Macroeconomics at Sad Rabbit - Substack Newsletter
With the government's ominous rhetoric of "tough decisions", a seismic shift could be on the horizon, with changes to CGT on the cards. Raising the upper band from 28% to 45%, aligning CGT with income tax, could stifle innovation and slow the flow of capital into emerging sectors, with investors favouring safer, lower-yield assets over volatile, high-return opportunities. Furthermore, the impact on the broader economy could be significant, with a CGT increase discouraging investment in small businesses. Additionally, in the property market, this potential CGT rise could be the straw that breaks the camel's back for landlords after years of regulatory and financial challenges. This could drive many landlords out of the buy-to-let sector, devastating the rental market against a backdrop of an already dwindling rental supply. The government must weigh the trade-offs between immediate fiscal needs and long-term economic vitality, as a tax hike today could be a growth gamble tomorrow.
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Riz MalikVerified
Independent Financial Adviser at R3 Wealth
Leave pensions alone. We should be encouraging people to save for retirement as there are no guarantees as to what provisions the state will be able to provide in the future. We already have a large proportion of the UK population with insufficient retirement pots and making changes to the current system will make that worse.
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Ross LaceyVerified
Director & Independent Financial Adviser at Fairview Financial Management
We don't want to see any messing around with pension rules. Pensions already unfairly suffer an image problem, so anything that makes it less likely for people to save for their future with pensions, only pushes people into the arms of scammy "too good to be true" investments promising the world that we've all seen advertised online.
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Simon BridglandVerified
Director at Charwin Private Clients
The Achillies heel of the nation, which allows us all to stand with some dignity in later life, is our pension. So if the Chancellor takes a swipe at the tax relief given to those who save for old age, it will be a disaster that will keep getting worse. It will start off having a small impact, but over time will press us all into retirement poverty. Having a reduced pension fund would be devastating for all, especially given that most people already cannot afford to properly fund their retirement. This will mean people needing to work until a much older age, in a job market getting small year on year. People already look forward to living on the breadline in retirement, so if Reeves takes a hatchet to the tax relief that we all receive on pension contributions, then there will be even less in the pot, placing further misery on every one of us when we least need it.
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Dariusz KarpowiczVerified
Director at Albion Financial Advice
The rumoured capital gains tax hike to match income tax rates, potentially reaching 45%, is a grave concern for property investors. This move would compound the challenges landlords already face, including rising interest rates and stringent regulations. We're witnessing a worrying trend of investors liquidating portfolios, while the UK's burdensome tax environment prompts wealthy individuals to consider relocating. If implemented, this CGT increase could trigger a mass exodus from the private rented sector, exacerbating housing shortages and potentially inflating rents. This short-sighted measure risks undermining the very market it aims to regulate. It's crucial for the Chancellor to consider the long-term implications on the property market, housing availability, and the broader economy before making such drastic changes to CGT rates.
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Carol VickersVerified
Owner at Created by Carol
So many disabled people have to work for themselves due to discrimination by employers and a lack of reasonable adjustments. And yet, it already costs disabled households an additional £1,010 per month just to reach the same standard of living as non-disabled families (Scope). My plea to the Chancellor is: please don't increase the financial burden of being disabled by taxing us even more. Disabled business owners are trying to find a way to contribute to the economy and support ourselves in spite of the barriers placed in our way by employers. We cannot absorb any more costs.
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Malcolm Davidson0
Director at UK Moneyman
Lloyds Banking Group recently revealed a staggering 47% drop in regulated advisers since the peak, with numbers down 19% in just five years. As an SME owner, I can say the current risk/reward balance for hiring new talent is off-kilter, and any employer NI increase will only worsen the situation, making recruitment and training in our industry even more of a burden.
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Graham CoxVerified
Director at Bridging Hub
My main concern would if the Chancellor makes private pensions less tax-efficient. We need to encourage people to invest and plan for their retirement. Simply relying on the state pension alone is a sure recipe for a life of poverty.
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Kim McGinley0
Director & Specialist Broker at VIBE Finance
My biggest concern ahead of the autumn Budget is whether lessons have truly been learned from past experiences. We’ve all felt the aftershocks of poorly executed policies, and it’s safe to say there’s a lingering apprehension among the business community. The government needs to tread very carefully with any new measures they introduce. Too often, it feels like there’s little thought given to how these policies will be implemented and the impact they’ll have on the market. To say we’re nervous would be an understatement, but unfortunately, it’s out of our hands. We’ll just have to wait and see how things unfold. It’s crucial that Labour takes a measured and well thought out approach.
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Scott Taylor-Barr0
Principal Adviser at Barnsdale Financial Management
The one thing I would not want to see is any gimmicky new "support" around housing, especially if it only helps one area of the market, like new build, and does little more than drive property prices even higher. Whilst the government does need to act around housing, it needs to be underpinned by a solid consultation process with all the relevant stakeholders to produce something that is effective in the long term, not just a "quick win" that does little for homeowners, or prospective homeowners, but secures the government some positive headlines in the short term.
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Alison Boutoille0
Founder at CityStack
The independent publicans we support are extremely concerned about the upcoming Budget, particularly about additional business rate hikes and the threat of higher property taxes. Currently, they are benefiting from a 75% property discount scheme, but if that were to end, in April 2025 pubs could face an additional rise to their bills, in line with the headline rate of inflation. The alcohol duty rates as well as the beer garden smoking ban plans are other strong concerns for them.

The decrease in revenues due to the cost of living crisis, which has led to lower footfalls and people budgeting less towards going out, added to soaring bills, has led to a critical challenge for the survival of pubs all over the country.

While big chains may be well equipped to weather the current economic situation, it’s much harder for independent businesses to keep themselves afloat. Publicans desperately need measures to help them thrive, not additional costs.
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Nikki Tapley0
Managing Director at Collaborative Enterprises Ltd
Something many micro company directors are concerned about this budget, is increasing taxation on dividends, and increases in corporation tax. Having spoken to many business owners in recent months, there is a sense that they are being intentionally pushed into self-employment over limited company directorship. My personal and professional opinion is that this is damaging to our economy. We need to make it easier for aspirational entrepreneurs to grow assets that add value to our economy, creating employment and building wealth that can benefit local communities.