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'National scandal' and 'distant dreams' - experts give their views on the Budget...

ended 30. October 2024

Following today's budget announcement, our experts have expressed a mix of concern and disappointment regarding its implications for various sectors. Delivered to Parliament by Rachel Reeves, Labour's first budget in 14 years has been described by many as failing to address critical issues adequately. 

There are alarms over the private rental market, described as being in "death throes" due to increased taxes and regulations. The inclusion of inherited pensions in the inheritance tax regime raises further worries about reduced benefits for heirs.

Small businesses feel overlooked, facing high National Insurance contributions and insufficient support amid rising costs. The freeze on personal tax thresholds is also seen as a missed opportunity to ease financial pressure on taxpayers.

While some positive elements, like reductions in alcohol duty, have been noted, the consensus is that the budget fails to meet the pressing needs of vulnerable populations and businesses in a tough economic climate.

Their views are below.

11 responses from the Newspage community

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Anita Wright
Independent Financial Adviser at Ribble Wealth Management
Bringing inherited pensions into IHT regime represents a significant shift for beneficiaries inheriting pensions, as these funds have traditionally been exempt from inheritance tax. Including pensions in IHT from 2027 would subject the value of inherited pensions to the standard 40% inheritance tax rate on estates over the nil-rate band (currently £325,000, with possible increases for certain residential property transfers). This could considerably increase the tax liability for those inheriting larger pension pots, reducing the net amount beneficiaries receive. It also reduces the attractiveness of using pensions for intergenerational wealth transfer, as a significant portion of the value might now go to taxes rather than to beneficiaries. Once the policy is confirmed, forward planning with a tax-efficient structure would be essential to minimize the impact on wealth intended for beneficiaries.
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Kate Underwood
Managing Director / HR Director at Kate Underwood HR and Training
As a small business owner, this budget feels like a missed opportunity for real support. They’re keeping corporation tax at 25%, which is fine for stability, but there’s little relief for the costs we face every day. Employer National Insurance Contributions are still high, so for those of us already stretched by rising wages, it’s another blow to hiring plans and growth.

While there’s talk of boosting skills and productivity, these promises don’t directly help us right now. What we really needed was some break on statutory payments or direct support to manage employment costs, but nothing came through. We’re expected to keep up without much help.
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Scott Gallacher
Director at Rowley Turton
While limiting AGR and BPR may appear justifiable, it’s critical to confirm whether this change will impact all private businesses. Imagine a local family business valued at £30 million, wholly owned by a single shareholder. If that owner were to pass away, their family could face a staggering Inheritance Tax bill of £5.8 million. With no buyer likely to pay that amount for a minority share, the family would be forced to either dismantle or sell the business to cover the tax or saddle the firm with substantial debt. This is a direct return to the dark days of death duties, where thriving family businesses were routinely broken up solely to satisfy tax demands. Such policies risk unraveling the fabric of UK PLC, impacting local economies, job stability, and long-term growth across the nation.
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Sam Alsop-Hall
Chief Strategy Officer at Clive Henry Group
I’m still upset that I’m no longer considered one of the “working people” but to say this won’t impact everyone is a nonsense - increase in employers NI will stagnate wages and cause redundancies after Christmas as business owners seek to realign their payroll before the new rules around “day one employment rights” kick in. The reality is this will increase unemployment and cause and exodus of business owners and entrepreneurs - especially with the hits on Captial Gains Tax, Entrepreneurs Tax Relief and VAT on school fees. Highest tax burden on record.
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Simon Bridgland
Director at Charwin Private Clients
Two key points quickly emerge from the Chancellor's budget. First, the private rental sector appears to be in its death throes, with weary landlords struggling to salvage their investments. Second, there’s a troubling focus on pension funds, which are now attracting the attention of inheritance tax vultures. While the exact number of individuals whose life savings will be devastated by this punitive tax remains unclear, I fear it will become a new cash cow for the Chancellor to exploit in the future—especially considering the billions of pounds in lost pension funds that the current government is poised to tap into.
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Kundan Bhaduri
Property Developer and Portfolio Landlord at The Kushman Group
The current state of the UK housing market is nothing short of a national scandal. With the government's budget decisions today—including increased taxes and stricter regulations—affordable housing feels like a distant dream. Instead of incentivising builders and developers, the Treasury has opted for punitive measures that will only exacerbate the housing crisis.

As costs rise and red tape thickens, smaller property developers are being pushed out, leaving a market dominated by a handful of large players who can weather these storms. If the government truly wants to tackle the housing shortage, it must focus on enabling growth and innovation rather than burdening those who actually create homes. The future of housing in this country depends on policies that support, not suffocate, the very people trying to make a difference.
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Carol Vickers
Owner at Created by Carol
This budget has completely neglected the 20% of the population who are disabled or who have long term health conditions. Welfare cuts including disabled people. No mention of making housing, employment, entrepreneurship or transport more accessible for disabled people. No mention of fines for employers or businesses who breach The Equality Act. No plans to solve the 6 month wait for Access to Work assessments. No mention of getting people GP appointments, to access those new hospital beds. And a vague implication that disabled people don't work. The only hope I can see for disabled adults is the lack of increase on fuel duty. Not a great start for the new government.
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Steven Mather
Lawyer & Director at Steven Mather Solicitor
A typical labour budget; higher taxes, higher borrowing, big impact on businesses.

For those thinking about selling businesses, CGT rates for Business Asset Disposal Relief (BADR) will rise to 14% from 6 April 2025 and match the main lower rate of 18% from 6 April 2026. BADR applies to the first £1m of a business sale receipt, meaning the vast majority of hardworking business people looking to sell their business will now pay vastly more money - £40,000 more on a £1m sale, up to £80,000 from 2026.

Given the number of people rushing to get businesses sold before this budget, I expect M&A activity to increase considerably, and exit planning and retirement strategies to be accelerated as a consequence.
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Alison Boutoille
Founder at CityStack
The reduction in alcohol duty for draught beers is a welcome decision, signalling that the Government values pubs as essential community gathering places.

However, while necessary to address the cost-of-living crisis, increases in National Insurance and minimum wage place additional financial strain on small businesses. Independent pubs have already endured numerous challenges in recent years, from inflation and decreased footfall to staff shortages and soaring operating costs. The last thing they need now is added financial pressure. It would have been great to see more support from the Government for small businesses to thrive.
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Kasia Makarewicz
Senior Mortgage Adviser at Step by Step
The recent Autumn Budget has left me concerned, particularly around the introduction of VAT on private school fees and the changes to stamp duty. The VAT on private education not only increases the cost for families already stretched by rising living expenses but also adds pressure to an education system that’s already facing significant challenges. At this rate, the only thing my kids will inherit is a stack of VAT receipts!
Moreover, the adjustments to stamp duty feel misaligned with the current property market. By raising costs for prospective buyers, particularly at a time when mortgage rates are high, the policy discourages homeownership and slows down property sales overall. This is especially hard on families hoping to secure stable housing, as they now face even greater barriers to purchasing a home.
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Kelsey Phillips
Head of Specialist Lending at Arose Finance
Maintaining the existing personal tax threshold freeze until April 2028 was a missed opportunity to support residential and buy-to-let affordability for those that need it most. Last tax year, 80.4% of taxpayers qualified for the basic rate bracket and 1.2m people graduated from the basic rate into the higher rate band. Wages continue to rise by 4.94% (averaged over the last 5 years) and in this budget the government introduced a 6.7% increase in the National Living Wage.
 
Inaction on personal tax thresholds has and will likely continue to drag more tax payers into higher brackets which is a crucial metric for mortgage affordability. Specifically, for residential mortgages, lenders apply your marginal tax band to establish net disposable income; For personal name BTL investments, lenders apply your marginal tax band to stress your rent-coverage ratio. The freeze will continue to be felt by an increasing number of UK tax payers.