Leading figures and associations have been responding the Autumn Budget. Find out what they had to say…

The Horticultural Trades Association Director of Public Affairs, Jennifer Pheasey, said: “The Budget paints a mixed picture for the UK’s horticulture businesses, comprising 98% SMEs. The confirmation that employer national insurance contributions will rise, a 6.7% increase in the national living wage, adjustments to capital gains tax and ongoing changes in inheritance tax and property reliefs place additional financial pressure and uncertainty on many HTA members. These announcements come against a backdrop of other challenges, such as cross-border trade. We will examine the details of these measures and work with members to establish the full impact.

“Whilst much focus has been on tax rises, the government’s commitment to housebuilding and supporting investment is welcomed. We call on new homes to come with green spaces that are designed, delivered and maintained by UK horticulture. This must be an opportunity to boost UK businesses. We also welcome some continued relief on retail business rates, but we repeat our ongoing request to reform and fully review rates, including for our members in Scotland.

“We are also encouraged that our ask for action on retail crime, which accounted for a £16 million loss in turnover for HTA member garden centres in 2022, has been listened to with the announcement of effective immunity for low-value shoplifting scrapped and more funding to crack down on organised gangs targeting retailers.

“Maintaining consumer confidence amid the cost-of-living pressures is essential, and the government’s messaging encourages spending. However, it’s important to recognise the impact that economic uncertainty has had on household budgets and for our members, consumer confidence is crucial.

“Our sector delivers for the economy, environment, and health and wellbeing, which are significant challenges the government is currently grappling with and will only become more critical – Environmental Horticulture is uniquely placed to help with all three and therefore, investment in our sector will see returns across the UK. 

“As always, the devil is in the details, and the HTA will follow up with analysis and inputs to ensure our sector’s needs are understood, enabling the industry to flourish and contribute positively to the UK economy and growth.”

Steve Rodell, Managing Director – Retail & Leisure at Christie & Co, said: “While, in today's Budget, the Government committed to economic growth, it also committed to hikes in taxes for businesses around the country, including Capital Gains Tax and a rise in employers' National Insurance contributions by a lower £5,000 threshold. There will also be an added burden to businesses from an increase in the National Minimum wage that will somehow need to be paid for.  On the plus side, small employers will benefit from an increase in the Employment Allowance from £5,000 to £10,500.

The increase in the National Living Wage is likely, and NI will likely be passed to consumers in a higher process, but measures to increase household income will help retail and leisure consumer spending.  

The current 75% discount to business rates for retail and leisure businesses is due to expire in April of next year but will remain at a reduced 40% discount with a cap of £110K.  It will be interesting to see how this may affect growth plans. It is good news that small business rate relief stays in place and that the multiplier for retail hospitality and leisure will be set at a lower rate from the 2026 revaluation.

Fuel duty is frozen for another year and the Government will maintain the current 5p discount to help households. However, it has continued to emphasise the importance of investment in green infrastructure and technologies needed to achieve net zero, as we’ve seen with its introduction of the Vehicle Excise Duty. Car drivers who have been put off electric vehicles recently haven’t seen any incentives to turn their heads in this budget.

In the retail and leisure sectors, many deals are moving forward regardless, but at the higher end of the deal value range, some stakeholders have been adopting a ‘wait and see’ approach but we should see these move forward now."

Andrew Goodacre, CEO of the British Independent Retailers Association, said: "This is without doubt the worst Budget for independent retailers I have seen in my time representing the sector. The government's actions today show complete disregard for the thousands of hard-working shop owners who form the backbone of our high streets.

"Small retailers, who have already endured years of challenging trading conditions, now face a perfect storm of crippling cost increases. Their business rates will more than double as relief drops from 75% to 40%, while they're hit simultaneously with employer National Insurance rising to 15% and a lower threshold of £5,000, down from £9,100. Add to this the minimum wage increase to £12.21, and many of our members are telling us they simply cannot survive this onslaught.

"One member has already calculated these changes will increase their cost base by £150,000 next year alone," he said.

Mr Goodacre added: "For all the government's rhetoric about supporting small businesses and revitalising high streets, their actions do precisely the opposite. These punishing measures will force many shop owners to make heart-breaking decisions about their businesses' future.

"What makes this particularly bitter is that these are family businesses, often built up over generations, run by people who work incredibly long hours to serve their communities. They're now being asked to shoulder an impossible burden while trying to compete with online giants who face none of these cost pressures.

"This is clearly an anti-high street Budget. I can only assume that the government is happy for working people to shop online and buy cheap imports. This government has shown complete disregard for the local businesses that create jobs and maintain vibrant communities," he said.

A recent survey released by Bira showed that 46% of retailers reported worse trading in early 2024 compared to 2023, with 42.6% expressing low confidence for Q2 2024.

Mr Goodacre said: "This Budget betrays every independent retailer who has fought to keep their business alive through recent challenges. It's not just disappointing - it's potentially catastrophic for Britain's high streets."