‘Disaster written all over it’ – local verdict from New Forest and Christchurch bosses and groups to Chancellor Rachel Reeves’ Autumn Budget

BUSINESSES and organisations across the New Forest and Christchurch have given their verdicts on the Autumn Budget, with one branding it “a disaster”.

As reported in the A&T, key points from Chancellor Rachel Reeves’ Budget included raising taxes by £40 billion and a 1.2% increase for employers’ national insurance contributions to 15% in April 2025. The threshold for paying them will fall from £9,100 per year to £5,000.

She also confirmed changes to inheritance tax, which includes bringing pension pots within the tax from April 2027, and reforms to agricultural and business property reliefs, raising a total of £2 billion a year.

Simon Boyd, managing director of global structural steel firm REIDsteel in Christchurch, said the Chancellor’s first budget “has disaster written all over it”, adding: “It is not a budget for growth; it is a budget for decline and she is deluded if she thinks otherwise.

“Many SMEs will be wondering where they are going to find the extra money from to pay such additional taxes. Coupled with damaging measures in the Employment Rights Bill, it is nothing less than a tax on jobs.”

Chair of New Forest Business Partnership, Matthew Lawson, said there had been “mixed reactions” locally, particularly in the hospitality and food sectors, as they continue to navigate “challenging economic conditions”.

He added: “Whilst it is too early to detail the economic impact, from my own experience as a business owner, the hospitality sector in the New Forest is still grappling with the aftermath of inflation and increased operational costs, including energy costs which remain significantly higher than pre-2022 levels.

“New Forest businesses have been operating on increasingly thin margins. Many of our members were hoping for more substantial relief measures in this Budget.”

The increase in employer National Insurance contributions will have an “inevitable” impact on businesses, says Nigel Smith, managing partner of Ringwood law firm Ellis Jones Solicitors.

He added: “It will have unintended consequences, including pressure on wages, increased prices and in the worst case scenario it could lead some businesses to fail.”

Executive chair at Pennyfarthing Homes, Mark Adams, said the budget had been “a golden opportunity to support first-time buyers” instead of focusing “entirely” on affordable homes – an oversight which he predicts will prevent Labour from reaching its “ambitious” target of building 1.5 million new homes.

Chief executive and executive chair of Hampshire Chamber of Commerce, Ross McNally, said it was “clear” the Budget would mean higher costs for members and other businesses, resulting in “a real challenge”.

He added: “To help mitigate the ‘hit’, we therefore welcome other Budget measures announced by the Chancellor such as the 25% cap on Corporation Tax, the freeze on fuel duty and the continuation of the full-expensing system of capital allowances for investment in plant, machinery and IT.

“Measures to alleviate the impact of business rates through ongoing reliefs, while falling short of full-scale reform, will also be a help to many businesses.

“On balance, we understand the need for short-term pain for help create the right conditions to drive investment and prosperity, but this is certainly a tough Budget for businesses with a heavy burden to carry.”

Policy and research manager at the Campaign for National Parks, Ruth Bradshaw, called cuts to Defra budgets “disappointing”.

“If the government is serious about delivering its promise of wilder, greener national parks, we need more funding for protected landscapes, not less.”

The Country Land and Business Association (CLA) has launched a campaign after changes to a cap on “vital” inheritance tax reliefs, which they say will result in family-owned farms no longer able to be passed through generations.

CLA regional director Tim Bamford, said: "Labour promised to be the party for the countryside, for growth, and vowed not to cut inheritance tax reliefs. Now they have broken these promises. How can rural Britain trust them again?

“This government thinks inheritance tax reliefs for farmers are ‘loopholes’. In reality, they are targeted reliefs designed to protect Britain’s rural economy, jobs and food security.

"The fear and anger felt by farmers and rural businesses cannot be overstated. The CLA has launched a new campaign to protect their livelihoods."