Businesses were disappointed in the recent Budget announcements. Whilst there were no direct hits on personal taxation, some of the actions will certainly have a knock-on effect.
The increase in employer’s NIC of 1.2%, along with the reduction in the threshold at which an employer needs to pay NI, will impact their costs and could result in less recruitment and reduced salary reviews. Coupled with an increase in minimum wage and all the changes in employment legislation being faced by employers, we are again navigating some challenging times.
We are reminding businesses that consultation is currently being undertaken around the new employment proposals, and we are working closely with the Chamber network to ensure that the business voice is heard. There are huge changes being proposed, and our conversations with businesses so far are clarifying how impactful these changes could be.
Many of the changes will need secondary legislation, and it’s unlikely we’ll see major changes to business practices until 2026. The Chamber will be staying close to the timeline, bringing regular updates with opportunities to feedback directly to government ministers. Any businesses happy to provide an impact case study would be welcomed.
The British Chambers of Commerce recently released a report on the UK visitor economy, which was dealt a severe blow by Brexit and the Covid pandemic. While recovery has been promising, major challenges still persist.
These were not helped by one of the government’s announcements to raise funds by reducing the discount to retail and venue properties from 70% to 40%. Whilst this took away the cliff edge of no discount on 1 April 2025, many businesses are still nowhere near previous levels of business.
With Surrey’s visitor economy estimated at £3.3 billion, we need to support this sector. If tax-free shopping for tourists isn’t reinstated, we risk losing ground to other countries, with visitors choosing to spend their money elsewhere. Workforce shortages, particularly in hospitality, can only be addressed with a strong skills strategy and an immigration system that truly supports businesses.
