Businesses across Shropshire have given the Budget a broad thumbs-down. A wide range of firms said there was little in Rachel Reeves’ long-awaited and much-leaked speech to give the business community the confidence it needed to thrive in the coming year.
Telford-based civil engineering and construction contractor McPhillips, which directly employs 240 people and has delivered more than 140 projects worth £300million in the last five years, said today’s budget “fell short of the mark”.
Director Stuart MacKenzie warned that confidence across the sector had been knocked by speculation ahead of the announcement.
“Unfortunately, today’s announcements have not gone far enough to restore the stability we needed.
“The construction industry is impacted by almost every part of the economy so any measures which cause taxes to rise takes money out of the economy, puts pressure on businesses and will continue to stall growth.”
He warned that tax changes would create significant challenges: “Changes to salary sacrifice and minimum wage rises on top of the already hefty National Insurance hike will cause a mammoth administrative headache for businesses and will bring additional costs at a time when they want to be focused on investing in skills, sustainability and CSR initiatives.”
Neil Lloyd, chief executive of FBC Manby Bowdler which has offices in Shropshire, Birmingham, Wolverhampton, Knowle and Worcestershire, said Rachel Reeves had damaged her credibility with a series of U-turns before today’s speech.
Neil, who is also chairman of the Training and Manufacturing Group, said: “The Chancellor found herself in a very tight corner – partly through her own doing – and today’s speech very much reflected that.
“Business confidence is very fragile at the moment – and the Chancellor’s U-turn over income tax spooked the markets even more and has certainly undermined her standing with business leaders.
“We know that businesses have been delaying investment and hiring decisions while they wait to see what the Chancellor had to say. I’m not sure that today’s speech will inspire the confidence we need to get the economy growing again.”
But Neil said there were some announcements to welcome in today’s speech.
“The decision to bring down energy bills for 7,000 key firms is certainly welcome and I was pleased to hear the action to make training for under-25 apprenticeships completely free for Small and Medium Sized Enterprises and the £820million set aside to guarantee every young person a place in college, an apprenticeship or personalised job support.”
Amy Bould, managing director of Newport-based PR and marketing specialist Be Bold Media, said there was little positive in the Chancellor’s speech for business.
“The Government can’t even manage to announce its own Budget without it being leaked first – and they wonder why business confidence is shot to pieces.
“Yes, business rates relief is welcome but it’s overshadowed by yet another hammer blow to the cost of running a business, with inflation-busting wage cost increases. And in a couple of years they’re coming for our pension schemes too. You couldn’t make it up.
“Rachel Reeves spoke today about supporting working people but she’s making it systematically harder for the people who actually employ them.
“She’s also opened up a huge postcode lottery for businesses which want to drive growth. It was good to see a commitment to a number of ‘growth funds’ for mayoral areas such as the West Midlands, that’s great for businesses based there. But if you’re a business operating in Shropshire or Telford & Wrekin, where’s the investment for them.”
Pioneering engineering firm Transicon said the budget lacked tangible support for manufacturers in the wake of the Industrial Strategy.
Jennifer Hughes, general manager of the Telford-based firm which works with major manufacturers such as BMW, Tata Steel and Muller Dairy, welcomed support with energy costs and access to finance but warned the measures were not enough to restore confidence and growth across the sector.
She said: “The cumulative impact of increased National Insurance contributions, uplift in National Minimum Wage and Corporation Tax is already squeezing margins for many businesses and the additional tax rises announced today will take more money out of the economy and lump further pressure on businesses.
“We’re disappointed that there was no real recognition of the burden that industry is facing and the impact this is having on the sector’s ability to invest in skills, innovation, AI, cybersecurity and technology.
“With the launch of the Industrial Strategy earlier this year, we’d been hopeful that this budget might deliver more in terms of funding for manufacturers, particularly SMEs like ourselves.
“We were however pleased to see mention of funding for skills and welcome new measures on apprenticeships that will support us and other SMEs to train the next generation. The skills gap across the sector remains a persistent challenge.”
Danielle Harvey, director at Shrewsbury’s HTB Accountants said: “Today’s Budget presents a mixed bag for small businesses, with some welcome relief balanced against increased costs that will need careful management.
“The business rates changes are genuinely positive news, particularly for our retail, hospitality and leisure clients who have been struggling with high rates bills. The £1.2 billion reduction in business rates over the next few years, combined with transitional relief capping increases from the 2026 revaluation, does give them much-needed predictability.
“But the minimum wage rise to £12.71 per hour represents a £975 annual increase for a full-time minimum wage worker – a significant cost for small employers. Combined with the upcoming Employment Rights Bill changes, small businesses face mounting employment costs and compliance burdens. The salary sacrifice pension changes, whilst not taking effect until April 2029, will remove a valuable tool for small businesses to offer competitive benefits. The £2,000 threshold provides some protection, but many businesses use these schemes to attract talent without the overhead costs larger employers can absorb.”
Graham Corfield, chief executive of Telford-based Aviramp, whose award-winning step-free boarding ramps are in use at more than 900 airports around the world, said the Chancellor had not taken the action needed to drive business growth.
“The only way to get our economy firing on all cylinders again is to give the business community the freedom to start creating wealth and the confidence to invest in the future.
“That means stripping away the red tape and bureaucracy which stifles innovation, creating the conditions where business can invest with confidence knowing we won’t be taxed just for being successful and investing in skills and training so we can really seize the digital future.
“Not surprisingly, I didn’t hear enough of any of these things in today’s speech which will do little to inspire businesses or kickstart the economy.”
Dan Bebbington, debt and energy manager at Housing Plus Group, said:
“Scrapping the two-child limit for households claiming Universal Credit will help many families struggling with the cost of living. It will ensure children are no longer disadvantaged simply because of family size, and provide much-needed breathing space for parents managing tight budgets.
“However, Universal Credit will still be subject to the overall benefit cap, as Child Benefit counts as income. In some cases, this could mean families may see little or no financial gain from having additional children added to their claim. For households outside London, the maximum amount of benefits a family can receive is £1,835 per month – unless they meet the required work threshold or receive certain exempt benefits.
“The rise in the national living wage to £12.71 per hour will put more money directly into the pockets of working people, though it’s still below the £13.45 that the Real Living Wage Foundation says people need to earn in order to meet the current cost of living.
“However, extending the current tax thresholds freeze means many households will have less money in real terms due to fiscal drag. As wages rise, more people will be pulled into higher tax bands, reducing the benefit of pay increases and leaving us with less disposable income.”
The owner of a Telford firm of accountants says today’s Budget will have a lasting impact on many businesses and families across the region.
Tim Lloyd, owner of CQS Solutions, which has a base in Shropshire, said the sector was increasingly frustrated at the Government’s failure to fund the construction projects it had already promised.
“The Government was elected on the back of promises to build 1.5million new homes and fund major new infrastructure projects.
“But we have yet to see many signs of those promises being delivered or of very many new public sector tenders coming through.
“This Budget could have been an opportunity to change that, but I fear that opportunity has been missed.
“I wanted to see real action to make it more affordable to employ new people, to develop the skills and training we urgently need and to create the economic conditions which would drive growth.
“I certainly didn’t hear enough to make me think things will change dramatically in the next 12 months and that was disappointing.
“The mansion tax is likely to subdue activity in the housing market and the range of new wealth taxes will undoubtedly act as a disincentive to success.
“The endless speculation about what taxes she would – or would not – increase, the U-turns and the Government infighting have all led to the economic paralysis we have seen in recent months.
“Much the same thing happened ahead of the Chancellor’s first Budget last year and I would hope that important lessons have now been learned and we get no repeat in 2026.”
Helen Columb, owner of Telford-based Turas Accountants, says the freezing of income tax thresholds, increase to basic and higher rates of tax for property, dividends and savings income and above inflation rise to the National Minimum Wage, were all significant new developments.
“We are now paying the highest levels of tax in this country that we have ever seen, according to the Office for Budget Responsibility.
“The decision to freeze the tax thresholds for a further three years will mean many more people paying higher taxes, whilst the introduction of a £2,000 limit on salary sacrifice schemes before National Insurance is paid will impact long-term saving.
“And the fact that basic and higher rates of tax is increasing for property, dividends and savings income – all going up by 2% – is another significant move.
“For sole traders and landlords, it is now clear that the new Making Tax Digital Regime will definitely come into effect in April 2026.
“I’d strongly advise anyone who thinks they may be affected to seek professional advice to ensure that their finances work as efficiently as possible for them.”
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