Autumn Budget "increases every business’s highest expense" warns tax expert

A leading UK tax expert warns that the UK’s Autumn Budget spells higher costs for businesses across all sectors, with targeted tax relief only for select industries like haulage and hospitality.

Duncan & Toplis, which represents over 13,000 businesses across the Midlands and London, cautions that recent payroll projections will be radically upended by the new financial demands.

The changes, including a National Insurance increase to 15% for employers and a 6.7% rise in the National Minimum Wage to £12.21, will require “radical financial reassessment.”

Graeme Hills, Director and Head of Tax at Duncan & Toplis, said: “The Autumn Budget isn’t disastrous, but let’s be frank - it isn’t good news.”

Capital Gains Tax has now risen to 24%, which could dampen investment and slow asset disposal. However, Hills notes that this rate “remains the lowest in the G7, maintaining some appeal for UK-based investments. While it’s a relief that it hasn’t been increased to the rumoured 45%, it is still an unwelcome adjustment for many businesses.”

Changes to Inheritance Tax for agricultural land also carry significant implications. With tax relief on farmland now capped at 50% for assets over £1 million, Hills anticipates a shift in how farmers transfer assets to future generations. “This could prompt the farming community to transfer land earlier to avoid Inheritance Tax burdens,” he says, “but it does add an initial financial complication. It’s essentially an impending tax hike which may catalyse change long-term - but is likely to mean difficult decisions lie on the horizon for many of the nation’s farmers, meaning now is the time to act.”

“With the National Minimum Wage increasing to over £23,000 annually, employers’ National Insurance contributions increasing to 15% while the secondary threshold for employer NI is almost halved to £5,000, finance departments across the country face an enormous administrative challenge. This means that the nation’s biggest line of expenditure has just increased - and will inevitably mean that some businesses must think hard about how many employees they can afford.”

Relief for Haulage, Hospitality, and Leisure

Hauliers and logistics companies received reassurance from the Government’s decision to freeze the 5p reduction on fuel duty for another year. “The freeze is a win for the transport sector, avoiding tax hikes that could disrupt essential goods movement,” Hills comments.

Meanwhile, hospitality businesses can look forward to lower business rates for retail, hospitality, and leisure. Coupled with a 1.7% duty reduction on draft products in pubs, this may support foot traffic by keeping pint prices steady, even amid rising labour costs.