Mon, 24 Nov 2025

Mon, 24 Nov 2025 What can nervous businesses expect from the Budget?

It is going to be a nail-biting final few days for business leaders, says the BBC's Business Editor, Simon Jack.
Business leaders are bracing themselves for potentially more tax hikes in the upcoming Budget, following a £25bn National Insurance increase and inflation-busting minimum wage rise last year. As a result, confidence among CEOs and finance directors has become increasingly fragile. While economists expect taxes to rise again, they also predict that the Bank of England will respond by lowering interest rates, boosting borrowing and spending, which could offset some of the negative effects on GDP. Some potential measures in the Budget include:
* Making business rate discounts permanent and removing cliff edges
* Increasing tax rates on large retail properties
* Introducing energy bill relief for 7,000 businesses
* Focusing British Business Bank lending on high-growth sectors
* Reducing payments to the Bank of England that cover their losses on government bond sales Other issues on the table include:
* Phasing out windfall taxes on oil and gas industry profits
* Reforming Employment Rights Bill to address concerns over sick pay and unfair dismissal
* Implementing a cap on salary sacrifice schemes for workplace pensions Businesses are eager to avoid more "nasty surprises" and blanket tax rises, with many delaying investment decisions until the Budget is revealed. However, some expect to increase investment if the Budget is seen as supportive of business growth. Regulated fares will not see annual price hikes for the first time in 30 years, but electric vehicle owners may face a new tax elsewhere in the Budget. There are growing concerns that current policies favor pensioners over younger generations.
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