Businesses in Surrey have expressed varied reactions to Chancellor Rachel Reeves’ recent budget announcement, which outlines future spending and taxation plans. Notable measures from the budget include the elimination of the two-child benefit cap, the freezing of income tax thresholds until 2031, and the introduction of a tax on electric and hybrid vehicles starting in 2028.
Property agents have suggested that while the budget may positively impact small businesses, it poses challenges for landlords. Additionally, care providers have voiced concerns regarding the implications of a rise in minimum wage. Martin Groves, who operates the Hot Blossom pub in Farnham, remarked that the budget “could have been a lot worse.”
In a discussion on BBC Radio Surrey, Groves commented on the expectation of tax increases to fund pandemic-related expenditures, expressing a degree of resignation about ongoing cost pressures that have been transferred to customers. He noted that compared to previous spikes in energy prices, the current situation is not as alarming but acknowledged that any cost increase can strain a business.
Steve Lane from Robinsons Property highlighted potential negative impacts for landlords. He indicated that current legislation, like the upcoming Renters Rights Act due in May 2026, may dissuade landlords from investing, thereby reducing available rental properties and pushing rents upward. However, he identified a decrease in business rates for smaller properties as a positive aspect, which could benefit small and medium businesses despite expected increases for larger locations.
In the care sector, Michelle Wilson, a manager at Home Instead, raised concerns over the rise in minimum wage, describing it as a potential issue for providers recovering from earlier National Insurance increases. She pointed out that the competitive market dynamics could complicate recruitment and retention efforts within the social care sector. Wilson characterized the budget’s effects on social care as presenting both advantages and disadvantages amidst continued pressure from an aging population.
Source: https://www.bbc.com/news/articles/cvg160x6gddo?at_medium=RSS&at_campaign=rss