With just under a week to go until the second Budget of this Government, the buzz of potential announcements is only getting louder. In fact, the media is awash with predictions, from changes to property and business taxes to extended freezes on National Insurance and Income Tax thresholds, but the result is only adding to the uncertainty for businesses and their owners. So, what do businesses and people really want?
According to Jonathan Lecomber, a member of our financial planning team, it’s simple. “A quiet Budget would probably be the best Budget in terms of financial planning. Last year, we saw a lot of changes, particularly around pensions, with them being included in inheritance tax now. It certainly appears there’ll be more to come with regards to pensions and we’re already seeing clients asking us about the amount of tax-free money they’ll be able to withdraw.”
Jonathan added that with a quiet Budget unlikely given what’s at stake for Chancellor Rachel Reeves, a key ask from clients is that new measures come with transitional arrangements allowing time to prepare and plan before the changes come into effect.
Zoe Roberts, a Tax Partner at BHP, agreed saying: “A positive Budget is about knowing if changes are coming, when they’re coming and ensuring they’re not too fast or too sudden.
“If new tax measures are announced, the simple ask is that they’re pro-business, encouraging organisations to invest and giving them the confidence to make growth-focused decisions such as entering new markets, investing in new equipment or growing their team.
“Our clients want a Budget that will help them do those things, and by doing that, the Chancellor will support the wider economy to grow.”
Simon Kendall, a Digital Finance Partner at BHP, said understanding the context of where this crucial Budget sits in the economic cycle was key.
“I think acknowledging we’re in the midst of another revolution, particularly with regards to technology, and providing related support would be the best result from this year’s Budget”, said Simon.
“Funding and guidance around how SMEs and owner-managed businesses can take advantage of new technologies like AI would be beneficial to help offset some of those wider economic challenges which businesses have faced. This would help boost business confidence and deliver growth for UK plc.”
Callum Doherty, Tax Partner at BHP, explained that it’s important to remember the UK has one of the most complicated tax regimes in the world and that many businesses he speaks to wanted to see a Budget which would help simplify things.
He also added: “A good Budget would seek to support employees. Despite working people not having been taxed directly so far in line with Labour’s election manifesto, many have felt the impact of cost rises as a result of recent increases to National Insurance employer contributions and the continued impact of fiscal drag due to the freeze on income tax thresholds since 2022/23.”
To find out more information about Budget 2025, join TheBusinessDesk.com and BHP for its Budget Bulletin on 26th November and register for the BHP Budget Seminar on 4th December by clicking here.
