Labour’s John Healey delivered a Budget earlier today, let’s get a round up of reactions so far. Apologies to those we missed due to space reasons.
WESTFIELD HEALTH
Dave Capper, CEO at Westfield Health
“Health and wellbeing support has never mattered more in the workplace. Our Annual Workplace Wellbeing Survey found 63% of people who left work through ill health believe the right support could have kept them in work. Health insurance and cash plans are often how employers give their people that support, quickly, when they need it.
“This is a welcome U-turn and the right call but it’s exasperating given all the time and effort taken by the industry to try and communicate the change in rules. Getting more people investing for the long term is a worthy goal, but slashing the Cash ISA allowance and layering on complexity was always a blunt tool that risked putting new investors off rather than drawing them in.
“People become investors when they feel informed and supported, not when they’re pushed. Investors need confidence, clarity and education, and constant tinkering with the rules creates confusion. What we really need now is consistency. Months of speculation and shifting proposals have meant a waste of time, resource and money across the industry, and have chipped away at trust when savers most need clarity to plan ahead.
“Simple, stable rules are the foundation of a genuine investment culture. Now that the limits are staying in place investors can focus on building their wealth and laying the ground for a more resilient future. It’s worth taking stock of current investments and undertaking a portfolio health check, to ensure you are making most of the tax-wrappers available and are well diversified to cope when markets turn volatile.’’
KPMG
Responding to the new ISA measures announced in today’s UK Budget, Paul Riseborough, a partner in KPMG UK’s financial services consulting practice, comments:
“Retaining the £20,000 cash ISA allowance will be welcome news for savers and lenders, particularly smaller building societies that rely heavily on cash deposits to fund mortgage lending.
“Changing the cash ISA allowance was never likely turn the UK into a nation of investors – 87% of cash ISA holders confirmed they wouldn’t switch to stocks and shares regardless of the lower cash limit. Whilst today’s announcement also includes new ISAs aimed at first time buyers and potential investors, the constant changes to ISA rules risks detracting from one of the product’s main benefits to consumers – its simplicity.
“Away from product designs, focus must turn to making a success of measures already in place to boost financial literacy and support consumers with financial decisions.”
BCIS ON REBUILDING
Cos Kamasho, principal consultant at BCIS, said:
The Autumn Budget does little to ease the pressures behind rising rebuild costs, and some measures could even add to them.
The National Living Wage rises by 3.9% to £13.21 an hour in April, lifting labour costs directly and through pay differentials and subcontractor rates. Fuel duty relief runs only until July 2027, when duty is set to rise from 52.95p to 60.59p a litre.
Eligible manufacturers will get up to 25% off electricity bills, but energy-intensive materials such as bricks, cement and glass rely mainly on gas, and there was no help with gas costs.
The freeze on major changes to building regulations offers some stability, although building safety requirements will continue to evolve, and the Future Homes Standard will raise the specification a full rebuild may need to meet.
Rebuild cost inflation is currently outpacing general inflation. The ABI/BCIS House Rebuilding Cost Index rose by 4.4% in the year to September, compared with consumer price inflation of 3.5%. A sum insured that was appropriate a year or two ago can quickly fall behind, and indexation only maintains a figure that was right to begin with.
Regular reassessment gives policyholders, and the insurers and brokers supporting them, a sounder basis for keeping cover in step with rebuild costs.
PAYMENTS ASSOCIATION
Emma Banymandhub, CEO of The Payments Association:
“This budget was positive overall. It’s important that our industry remains nimble and innovative, especially when the payments sector touches upon every aspect of the economy and continues to evolve far faster than the governing legislation. With that in mind, the Chancellor’s announcement of measures like founders’ relief and increased support for entrepreneurs is welcome and will hopefully help secure the UK’s position as the fintech capital of the world.
“Equally significant is the government’s action on tax compliance through mandatory point-of-sale (POS) software standards and a crackdown on till fraud. Electronic sales suppression undermines legitimate commerce and distorts the retail landscape. We welcome targeted measures that eliminate illicit manipulation software and ensure tamper-proof, immutable transaction logging.
“As the UK adapts to shifting fiscal realities and tax adjustments, the payments sector stands ready to power the next wave of sustainable digital growth – from advancing open banking and scaling stablecoins to driving asset tokenisation. Yet, maintaining our competitive edge requires policymakers and regulators to work hand-in-hand with industry as true facilitators. Providing innovative fintechs and payment providers with proportionate, forward-looking regulation will be the key to inspiring commercial confidence and cementing long-term economic prosperity nationwide.”
CAPITAL GAINS TAX FREEZE
Isabella Galliers-Pratt, Senior Investment Director, at Rathbones, commented:
“A potential increase in Capital Gains Tax has been one of the primary concerns we’ve heard from clients ahead of this year’s Budget, so keeping rates unchanged provides some welcome certainty. That matters because uncertainty around CGT can influence behaviour even when the rules ultimately stay the same. Investors may bring forward disposals, delay selling assets or rethink how they realise gains because they fear a future increase.
“For now, the tax goalposts haven’t moved, which should allow investors to focus on the fundamentals rather than second-guessing the Chancellor. Tax is an important part of financial planning, but it shouldn’t be the tail that wags the investment dog. Decisions about when to sell should ultimately be driven by long-term objectives, diversification and risk, rather than Budget speculation.”
FRANK SMITH ON FARMS & INHERITANCE
Frank Smith, Managing Director of Cheltenham-based Frank Smith & Co. Solicitors, a specialist law firm which has 100 years combined legal experience in private client and property law offers thoughts;
“For many individuals, farming families and rural businesses, this year’s Budget is likely to feel like a missed opportunity as families look for the certainty they need to protect the businesses they have worked hard to build.
“While the extension of the red diesel duty cut until July 2027 will be welcomed by farmers, it offers only short-term relief. More needs to be done to address the longer-term challenges facing family-run farms and businesses.
“One of the biggest disappointments for farming and business families will be the Government’s decision not to revisit the changes to Agricultural Property Relief (APR) and Business Property Relief (BPR), which affect the inheritance tax relief available when passing on farms and businesses. Although the £2.5 million allowance for 100% relief, introduced in April 2026, was a concession from the Government’s original proposals, concerns remain about the impact of the reforms on succession planning. For families whose wealth is largely tied up in agricultural land and business assets, the challenge is ensuring that a viable farm can be passed to the next generation without creating an unsustainable financial burden. The continued freeze on inheritance tax thresholds adds to these concerns, as rising asset values can bring more families within the scope of the tax over time.”
NATIONAL WEALTH FUND
“With the announcement today of a £20.4 billion capital boost for the National Wealth Fund and the British Business Bank, the Chancellor has taken a welcome step that can help to unlock the investment Britain needs to deliver affordable clean energy, good jobs and growth in every postcode.
Even with the increases announced today though, these institutions will remain small compared to their international peers. The Government should build on today’s announcement by turning the National Wealth Fund into a proper national development bank, giving it the capacity and tools needed to mobilise investment at scale, with a continued focus on the clean energy transition and regional growth.”
SMALL BUSINESS RATES RELIEF?
Among the announcements, the threshold for retail, hospitality and leisure businesses to qualify for small business rates relief will rise from £12,000 to £18,000. The Government has also outlined measures to reduce energy costs, including targeted support for energy-intensive industries.
But for businesses already struggling to pay their bills, the immediate challenge is whether they can stay afloat long enough to benefit.
Molly Monks, insolvency expert at Parker Walsh, says the measures could help, but businesses need to look beyond the headline announcements and assess what they mean for their finances.
“Financial pressure does not wait for government policy to take effect. A business still has to pay its staff, settle supplier invoices, meet tax liabilities and cover its overheads while it waits for costs to come down.
“For a company already struggling to meet its commitments, a saving that arrives in several months may not solve the immediate problem. The key question is whether businesses have enough cash to survive until that support makes a difference.”
CYBER AND AI FUNDING
Kella Bowers, Head of Insurance at Forbes Solicitors, commented:
“A devolution package that combines local borrowing powers with greater fiscal autonomy is a huge positive for local authorities. Giving regional mayors the ability to retain 20% of locally raised business rates from April 2027 and a share of income tax from April 2028 should help accelerate regional growth and infrastructure projects.
“However, fiscal devolution is not just about decentralising spending power, it also decentralises risk. As spending and decision-making powers move away from Whitehall, local authorities and combined authorities will assume greater responsibility for the success, oversight and outcomes of major projects.
“To realise the full benefits of devolution, it’s crucial that governance, risk management and assurance frameworks evolve at the same pace as devolved powers. Strong project appraisal, transparent decision-making, and well-managed oversight will be essential for protecting public finances and ensuring localised project ambitions are matched by effective risk management.”
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