Chamber Partner Reactions to Government’s Autumn Budget 2025
Date published:
SES Technology
Eddie Tribe, Managing Director
“The Autumn Budget’s commitment to investing in AI Growth Zones and advanced manufacturing is a welcome boost for the North East. With strong momentum in industrial and data centre sectors, these measures can help accelerate innovation and attract high-value jobs to the region. SES Technology is ready to play its part in delivering the infrastructure that underpins this growth, supporting both local communities and the UK’s net zero ambitions.”
Newcastle Building Society
Ben Smith, head of commercial and product development:
“The Budget brought good news for older savers, who we know tend to prefer lower risk investments to maximise their hard-earned money, and manage their retirement. Retaining the full £20,000 Cash ISA allowance for over 65s shows the Government has heard our arguments about Cash ISAs and the important role they play in this.
“However, the 2% tax increase on savings interest, along with the cut in Cash ISA allowance for under 65s, adds further complexity and uncertainty for many ordinary savers, making it harder for people who are trying to do the right thing and save for their future.
“We’re concerned about the new cap on the amount that people can put into a pension without paying national insurance. This change may discourage younger people in particular from contributing more to their pension through salary sacrifice arrangements and see them fail to build the financial resilience they’ll need later in life.
“Rather than create additional barriers to long-term saving, we’d like to see support for workers to plan for their futures.
“Savers will need to build their understanding of the new rules and how best to manage their money. Local, accessible financial services and financial advice have an increasingly important role in helping people explore their options and get the support they need to make informed decisions.”
Womble Bond Dickinson
Will Ford, partner in the private wealth team:
“This Budget delivers a triple hit for wealth creators and asset owners. Employers and employees face an unexpected squeeze with NICs imposed on salary sacrifice pension contributions, further eroding a key pillar of retirement planning, and placing further costs on businesses. Investors and business families will feel the pain from higher dividend and savings tax rates, while landlords and property owners are hit twice; landlords by a 2% hike on property income tax and high-value homeowners by a new council tax surcharge on homes worth £2m or more.
“Meanwhile, more fiscal drag will pull more individuals and families into income tax.
“Many measures announced will not be introduced immediately, so to that extent, the pain will be deferred.
“One welcome aspect of today’s announcement was confirmation of a reversal of Government policy in relation to agricultural property relief and business property inheritance tax reliefs. Whereas the Government had confirmed that the new £1m allowance to apply from April 2026 would not be transferable between spouses, it has now sensibly abandoned that policy and confirmed that the unused allowance will be transferable after all. This had been a particularly egregious element of the planned new regime, which would simply have punished families who were poorly advised, or not advised at all.”
Society Matters Group
Society Matters Group is pleased that the Chancellor has decided to take a bold step forward to tackle child poverty by removing the two-child limit to Universal Credit. This is a crucial step in the fight to support the third of North East children whose lives are being held back by poverty, which damages their education, their health, and their future.
This brave measure could lift over a million children out of poverty, and combined with other initiatives such as breakfast clubs, an expansion of free school meals and the innovative work of the North East Combined Authority, we could see a real and lasting change for our children and all our futures.
Alison Dunn, CEO:
“Abolishing this cruel policy is a crucial step in tackling child poverty here in the North East and across the country. Thousands of our children will benefit now from a better childhood with more opportunities. It isn’t the end of child poverty, but this – combined with free breakfast clubs, more free school meals, and the extended childcare offer – signals a change in policy direction we fully support.”
Phill Capewell, director of partnerships:
“Every budget raises questions for businesses and their employees. Our research tells us that a third of North East workers have less than £50 left of their wages after their essentials – for them, these questions are going to become even more important. If you are looking for ways to help you and your staff navigate these changes, we are here to help.”
Neil Gow, head of social policy and research:
“We applaud the focus on investment in young people and their futures in this budget, not only with the removal of the Two Child Benefit Limit, but also the investment in the youth guarantee offering a six-month paid work placement to young people on UC. We know the need for good experience is so important for young people’s job prospects, and this will definitely help.”
Square One Law
Gill Hunter, managing partner:
“The Budget delivered mixed news for business. Clients will be pleased to see EMI expansion, giving growing firms greater scope to reward and retain talent. The absence of corporation tax rises will be welcomed too. However, increased dividend tax from 2026 will reduce returns to company owners, while higher landlord taxes will raise costs for commercial property investors. Reduced relief on EOT disposals also weakens an otherwise popular succession route.”
Sage
Steve Hare, chief executive officer:
“Yesterday’s Budget takes a steady approach, and that matters for small businesses that need certainty before they commit to new investment. The plan to introduce mandatory e-invoicing for VAT invoices from April 2029 is a welcome step. It tackles a crucial pain point for every SME: getting invoices out and getting paid on time.
“Combined with AI growth zones and a clear push to strengthen the UK’s AI and tech sector, this signals a real commitment to digitising the economy. It also gives SMEs a better chance to unlock productivity gains that make a meaningful difference on the ground.”
Pulsant
Mark Lewis, CMO:
“The focus on AI Growth Zones in the budget reinforces the growing demand for AI innovation across the UK, and the Local Growth Fund – £902m to invest in growth-driving interventions across mayoral strategic authorities – will boost local infrastructure, business, and employment support and skills programmes.
“This is heartening as a business operating interconnected data centres in many key regional locations, including here in the North East. But industry involvement in shaping these plans is critical, whether it’s planning to support the infrastructure behind AI and expand existing sites, ensuring energy supply or building the skills needed to take UK AI to a global stage.
“While there’s plenty to welcome, it’s also important to recognise and support existing regional digital infrastructure capabilities, including encouragement for local and national government departments to exploit that sovereign infrastructure.”
