Some comments in following Rachel Reeves first Budget;
RAC
Following the decision by the Chancellor to keep fuel duty frozen from Spring 2025 at 52.95p per litre, RAC head of policy Simon Williams said:
“Drivers will breathe an enormous sigh of relief after all the speculation that the 5p cut would be scrapped at the same time as pushing duty up beyond the long-term rate of 57.95p.
“It’s good to see the Government firmly recognising the importance of the car to millions of households up and down the country. Eight-in-10 drivers tell us they are dependent on their vehicles for the journeys they need to make, while 70% of commuters who live in rural areas have no other feasible alternatives to get to work beyond taking the car.
PENSIONS
Lily Megson, Policy Director at My Pension Expert, said, “Even though drastic pension tax changes didn’t materialise in today’s Budget, the damage has already been done. Weeks of speculation and rumoured sweeping reforms left savers anxious, causing many to rethink carefully planned retirement strategies. For those already wrestling with financial difficulties, this added uncertainty will have only deepened concerns about their future security.
“A confirmation of their already-pledged commitment to the triple lock and an increase in pension credit are welcome, if underwhelming. But it is not enough. The government now has an opportunity to rebuild that trust by focusing on initiatives that genuinely support savers. Finally prioritising comprehensive financial education and tools like the long-delayed pension dashboard will empower people to make informed decisions and feel confident in their retirement planning. What’s more, the second half of their pension review must deliver more than just lip service – savers need real, actionable reforms that encourage greater contributions and improve outcomes for retirement planning across the board.
“A nod to either of these engagement-boosting policies would have been a welcome announcement that could have alleviated some of the pension tax raiding fears.
“It’s now crucial that the Chancellor recognises the importance of stability and clarity in pension policy. Restoring confidence among savers will require transparent, considered policies that support long-term financial wellbeing, rather than fuelling rampant speculation that only undermines it.”
PERSONAL FINANCE
Paul Noble, CEO of Chetwood Bank (formerly Chetwood Financial), said that:
Budget overview:
“This was the most eagerly anticipated Budget in years. The arrival of the first Labour government in 14 years, coupled with the warnings of a ‘financial blackhole’ that needs filling, certainly added to the usual pre-Budget speculation, and the announcement itself covered a lot of ground.
“Some obvious watchwords emerged, such as growth and stability, reflecting that the Chancellor was walking a tightrope between putting public finances on a healthier footing and the need to manage the impact on personal finances, while still investing in opportunities for economic growth.
“Such was the breadth of policies unveiled, it will take time to fully assess the implications of this Budget. After all, each individual will be affected differently based on their earnings, lifestyle and tax commitments, so it is important to avoid over-generalising fiscal statements such as being ‘good’ or ‘bad’. Rather, the onus is on banks and financial services firms to provide support for consumers so they can better understand policy shifts and economic changes, ensuring they can then adapt their own financial plans accordingly.”
BUSINESS
James Burgess, Head of Commercial and insolvency expert at Atradius, says of the outcome of the Autumn Budget:
“Today’s Autumn Budget could be a game-changer for businesses across the UK, marking a pivotal moment for the economy. With Labour’s proposals set to impact retail, hospitality, and leisure businesses, these firms need to stay sharp as we head into 2025.
“As Labour confirms tax hikes of £40 billion, uncertainty looms over National Insurance contributions and small businesses across the UK, which will bear the brunt. SMEs, especially, will now have to prepare for the changes to Capital Gains Tax and increased employer National Insurance Contributions, which for many could be a deal breaker.
“In times like these, diversifying supply chains and reinforcing liquidity are essential for absorbing unexpected costs. The ‘domino effect’ of insolvency is real—protecting trade credit agreements with insurance is the smartest move to safeguard your business in 2025.”
Carly Caton, Partner specialising in commercial healthcare at UK and Ireland law firm Browne Jacobson, said: “Any new funding that helps to add capacity will of course be welcomed within the NHS but to prevent this just being a sticking plaster, we must also identify new avenues to generate additional revenue for trusts and their NHS patients.
“The government should actively encourage trusts, backed by funded support programmes, to develop a commercial mindset and explore how to maximise their available resources, while simultaneously improving healthcare services for the general public.
“Increasing private patient activity within NHS hospitals is one of the easiest routes to achieving this. Most trusts already do this to some extent with private patient units but these tend to be relatively small, meaning they provide untapped potential in terms of raising additional income to plough back in to NHS services.
“There are numerous ways of expanding these units and it doesn’t necessarily require significant capital investment if a trust is willing to partner with a private provider. Partnership structures can extend from commercial agreements to developing some form of physical expansion to estates, and all whilst creating new income streams for NHS patients at no cost to the taxpayer.
“Many of our decision-makers are all too keen to shout from the rooftops about the NHS being broken but this isn’t necessarily the case – it boasts world-leading assets and expertise that, if harnessed correctly, provide ample opportunities for healthcare to help drive economic growth as opposed to hampering it.”
REGULATION
Chris Lay, CEO of Marsh McLennan UK, said:
“We are disappointed that the consultation on a UK captive regime has not been launched.
“The UK is home to a world leading insurance market and could become an important home for captive insurers.
“At present, our current regulatory framework makes it hard for us to compete. Establishing a proportionate and competitive UK captive framework could deliver a major boost to the UK insurance market, demonstrating our innovation and signalling we are open for business.”
SMALL COMPANIES – EMPLOYER NI
Julian Hucks, Founder and Managing Director, Starpeak Insurance Solutions, discussing what the outcome means for SMEs from an insurance perspective.
“The government has missed an opportunity to help the UK’s small businesses by not announcing a reduction in Insurance Premium Tax (IPT), which currently sits at 12%. At the same time, the announcement of a 1.2% increase in National Insurance contributions demonstrates again that the concerns of small businesses have been largely overlooked. With rising operational costs, many small businesses may have to rethink their hiring approach and will face difficult decisions to maintain financial stability.
“Cutting back on insurance may be tempting for small businesses as they look to shave costs, but it will leave them exposed to substantial risk. Instead of sacrificing insurance cover completely, small businesses should explore more tailored and competitive insurance options. By doing this, organisations can remain protected in a way that is most aligned to their budgets and specific needs.”
Leading female Cyber and data expert, Alina Timofeeva’s reaction to today’s Autumn Statement;
Alina is associate partner level with experience in FinTech/Ai/Cyber at the Big Four with clients including Santander, HSBC, JP Morgan Chase, Nat West and Credit Suisse.
Alina Timofeeva says: “Innovation” was made a key priority in the Chancellor’s Autumn Budget with more than £20 billion funding for the science sector. I welcome the public investment in the UK – however, it is disappointing to not hear about plans to protect the cybersecurity needed so desperately for our country, given the recent scandals including the NHS, Harvey Nichols, Revolut and the Post office. We also did not hear concrete steps for the government to support London becoming the AI capital of the world. We had promises from the Conservatives to grow AI, Quantum, Innovation agenda before.
Innovation offers opportunities to drive new investment from private business into the UK, creating wealth for the country and countless new jobs. The UK has the world’s best graduates, respect for the rule of law, and, importantly, now the much-needed political stability that innovation needs to thrive.
HIGH NET WORTH
Kate Arnold, Head of Cripps’ Private Client Group, and Paul Fairbairn, Head of the Private Wealth Sector Team, said:
“As an adviser to wealthy individuals, families, landowners and non-doms, this Budget – one of the most anxiously anticipated by our clients in recent years – has contained less of concern than was expected. Overall, and pending a full review of the draft legislation, we see this Budget as necessitating a careful review of any historic planning – but on the whole, is not as punitive as feared.
“After all the leaks and comments from the government it is no surprise that CGT rates have gone up, but a pleasant surprise that they have only gone up to 24%. Those who thought the Chancellor would place the final nail in the coffin of Business Asset Disposal relief (formerly Entrepreneurs Relief) were wrong, but it will no longer be so generous – creeping up to 18% from 10% over the next two years – so those investors looking to exit will have a small incentive to do so soon rather than later.
“Inheritance tax has seen the widest range of speculated outcomes. Speculation was rife that Agricultural Relief and Business Relief would be scrapped, and although they will not be scrapped they will instead be limited so that the first £1 million is free of inheritance tax. Any value above £1 million will have an effective rate of 20%. Crucially however this will not come into effect until 2026, which may afford opportunities for planning between now and then (although there will be some anti forestalling measures). Whilst 2026 seems a long way off, careful consideration will be needed and affected families should seek advice sooner rather than later.
“We know Business Relief on AIM listed shares was in the Chancellor’s cross-hairs, which had already resulted in a contraction in the market. Her halfway house of announcing a 20% effective rate will probably now prevent a further slump, as those invested for the tax benefits will still prefer a 20% rate to a 40% rate.
“The biggest inheritance tax change is the abolition of tax relief on inherited pensions from April 2027. This is not a new idea and we have seen it before, so advisers will be dusting off historic advice to consider how best to minimise the impact of this change.
“A big surprise, which had not even been hinted at, was an increase to the already punitive SDLT surcharge for second homes from 3% to 5% from tomorrow. A nasty surprise for those about to buy unless they are able to complete today.
“After the last government tried to steal Labour’s clothes when it came to non-doms, we knew domicile would no longer be a determining factor in favourable tax treatment. In recent weeks the big question was whether the Chancellor would row back on the inheritance tax treatment of trusts set up by non-doms, but her speech was silent on this. So now us tax professionals who work with ‘non-doms’ (new name still to be determined) will be wading through the legislation to work out what this actually means for their clients.”
HEALTH INSURANCE
Paul Schreier, CEO at Simplyhealth, said: “The government has committed to deliver urgent change for healthcare across the country, but today’s budget leaves many questions unanswered. Parts of the health system including the health and protection sectors as well as the role of employers continue to be overlooked and their potential left unrealised.
Working people are struggling to rely on the NHS. With waiting lists for everyday treatment at record highs, people need access to services such as GPs, counselling and physio. Mental health and back pain are the two leading causes for time off work, contributing to record highs of economic inactivity and economic stagnation.
This autumn budget missed a significant opportunity to harness the potential of both employers and the wider health and protection sector in delivering affordable, preventative healthcare. With 70% of businesses wanting to do more for their people’s health and a projected 4.3 million expected to be economically inactive by the end of this parliament, the practical and moral imperative is clear.
As set out in our blueprint report Improving access to healthcare via the workplace launched in parliament earlier this month, the Government must address the excessive tax burden that impacts businesses and their employees when investing in health cover products. Since 2015, the rate of Insurance Premium Tax has doubled from 6% to 12% and the current Benefit-in-Kind exemptions do not reflect employers’ efforts today. These barriers stop healthcare from being accessible to all and risk worsening the current workforce sickness epidemic.
The NHS does not have the capacity to be our only first line of defence. And that’s why we are here to help. We know from the thousands of businesses we partner with that our low-cost health plans are helping those at work to address everyday healthcare needs, from lorry drivers to supermarket shelf stackers, teachers and posties.
We must utilise every solution to ensure that no one is left waiting for treatment and a prevention economy is our future”.
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