Chancellor Rachel Reeves is set to deliver her Autumn Budget on Wednesday, November 26, amidst growing anxiety from the UK's small business community who fear the financial plan could render their operations untenable.
Business Owners Voice Their Budget Fears
This second budget from the Labour government has been preceded by intense speculation, with many local enterprise owners concerned that policies will disproportionately target them. Their worries were compounded by the previous Budget's rise in National Insurance costs, which they see as a sign of things to come.
Tony Redondo, Founder of Cosmos Currency Exchange in Newquay, expressed deep concern over potential stealth taxes, specifically a further freeze on income tax thresholds. He also anticipates hikes in dividend tax and capital gains tax, alongside more bureaucratic red tape.
"Another rise in business taxes could make running a firm in the UK untenable," Redondo stated, issuing a stark warning. "We could have a Truss-like run on the Pound if the bond vigilantes give a thumbs down to the Budget."
Specific Sector Concerns and Economic Warnings
In the property sector, James Cane, Director of James Cane – The Truro Estate Agent, fears the government will single out property. He is particularly worried about a potential rise in stamp duty or the introduction of a new tax payable when selling a home.
"There has been talk of a stamp duty payable not only when buying a house but also when selling, which would be really detrimental to an already poor market," Cane explained.
The sentiment is echoed by finance specialists. Andrew Wattsford of Wattsford Commercial Finance cautioned against penalising the very firms that drive the economy. "It would be folly to raise taxes at the expense of the very firms that drive employment, innovation and tax revenue," he said. "Penalising enterprise during a fragile recovery risks undermining the economy."
A Climate of Fragile Confidence
Tim Cooper-Cocks, a business development specialist at Tomorrow Assured, highlighted the precarious position many businesses find themselves in. His main concern is any measure that increases operational costs or adds complexity.
"Many businesses are already juggling tight margins," he continued. "Sudden shifts, especially around taxation, can unsettle confidence."
John Dunwell, owner of Mr Merchandise, offered a grim summary of the national mood, stating simply, "I think the country has got itself into a serious hole that no-one seems to know how to get out of."
As the Chancellor prepares to unveil her plans, the UK's small business owners wait with bated breath, hoping the budget will support rather than stifle their vital contributions to the economy.
