Budget 2025 What Britain's business owners really think

The Chancellor, Rachel Reeves, delivered her second Budget on Wednesday, setting out a plan she says will put the UK on firmer economic ground. While the headlines focused on tax changes and spending priorities, the reaction from people actually running businesses tells a more interesting story.

To get a clearer sense of what the Budget means on the ground, we asked a group of entrepreneurs and sector leaders spanning property, financial advisory, construction and investment, to share their first impressions of the Autumn Budget and its real-world consequences for businesses and the wider economy. Taken together, they reveal a Budget that will present each sector with a very different set of challenges in the months ahead.

Investment and economic confidence
Serge Santos, Serial investor, entrepreneur and business leader says a lot has already been written about the autumn budget, and rightly so. The communication from Reeves in the build up to it has been muddled at best, and overall undermined the credibility of the announcement before it was even issued. "My immediate reaction is that the pre-budget leaks aimed squarely at the bond markets. It reflects a government deeply unsure of how its plans will be received and acutely aware of the risk that the gilt market could deliver a harsh verdict. My second is one of continued disappointment at the absence of vision or coherent policy. It feels as though we are filling potholes rather than rebuilding the road. The sheer volume of minor tax adjustments gives the impression of a budget crafted to placate as many groups as possible while avoiding short-term backlash. Furthermore, despite her pledge that 'Britain will back you', this budget did nothing to inspire the business growth and entrepreneurial innovation required to advance the economy. The deeper issue is that this absence of strategy will weaken the government and hand opportunities to every other party. The country cannot afford the sort of political instability seen in France or the decades of churn Italy endured."

Property market reaction
Reece Mennie, CEO of Hunter Jones Group says being a landlord has been far from lucrative in recent years, with tax hikes, regulatory pressures and higher borrowing costs eroding margins. "This year's Budget delivers yet another hammer blow. While landlords escaped a rumoured National Insurance increase, a 2% rise in tax on property income from April 2027 will push many to consider selling up. The biggest losers, however, will be tenants. Reduced landlord confidence inevitably means shrinking rental stock, rising rents and fewer options in an already strained market. Far from easing pressures on 'working people', this Budget risks deepening the rental crisis.

For property investors, the message from the Chancellor is clear - relying on traditional buy-to-let is becoming increasingly unviable. Those seeking strong, predictable returns will need to think seriously about diversifying. The 2025 budget has further highlighted the advantages of alternative property investments, also known as property bonds, when it comes to attracting the highest returns and avoiding additional taxes put in place by the Government. The attraction of ISAs has consistently been diminished in recent years, and a reduction in the level of tax-free savings from £20,000 to £12,000 (for under 65s) will no doubt contribute further to more people seeking a different, more profitable, method of investing. For those with properties worth more than £2.5m, there will be an additional £2,500 charge on top of existing council tax payments, with a £5,000 surcharge for owners whose property is worth more than £7.5m. The good news is that those looking to invest don't need to be stuck with these unfavourable options, as property bonds avoid all of the pitfalls that have been created through successive budgets which have significantly impacted the returns individuals can expected to receive from more traditional methods."

SME and business tax reaction
Richard Davis, FNLY says ignoring the implication on personal assets there were a few interesting changes for businesses announced in the autumn budget, which they may be able to take advantage of - alongside other changes they need to be aware of due to their potential implications. The eradication of the costs involved with taking on an apprentice (aged under 25s) could well open up potential opportunities for businesses who may previously have been deterred from apprenticeship schemes due to the investment needed.

"Whilst those with commercial properties worth more than £500,000 are facing higher business rates, the changes for smaller businesses with lower-value premises could well be positive. And for those considering an Employee Ownership Trust (EOT, also known as a co-operative), the reduction in tax relief from 100% to 50% could now stand as a deterrent.

Salary sacrifice schemes may now also result in additional taxes for those who have previously been using them to boost their future pensions – so companies should certainly take advice, and ensure these changes are highlighted to their employees. Similarly, with dividend tax rates due to rise by 2%, business owners may want to review how income is extracted from their companies as the new changes may make PAYE more beneficial for them. Reviewers of the budget will rightly be focused on the headlines relating to personal assets, but there are also plenty of considerations for business owners – which may well have implications for their employees too. Ultimately, the devil is in then detail and it's vital that leaders keep a keen eye over the next few days and weeks as all information is released, while ensuring they seek support where needed."

Construction and infrastructure reaction
Andrew Kitley, Founder and MD of Kitall says construction added over £141bn of value to the UK economy in 2023 and employs around 7% of the workforce, and every pound we invest in construction has a multiplier, studies put it at roughly £2.90 of wider economic activity for every £1 spent.

"Supporting infrastructure and construction should be a national mission. A long term legally backed pipeline is needed for transport, energy, digital and social infrastructure, so firms and investors can actually plan.

Planning that is resourced properly and faster, so we stop taking a decade to approve what should take a couple of years. Public money going first into repairs and upgrades that unlock growth, city transport, key roads and rail, energy networks, and then into strategic new capacity. For every project, the test is simple, does it create jobs now, does it raise productivity later, and does it make the country more resilient, if the answer is yes, it moves, and the construction industry is the delivery engine."

The Autumn Budget has sparked mixed reactions across sectors, with many business leaders highlighting that minor tax tweaks and short-term fixes fail to provide the long-term vision and support needed for growth. While opportunities exist for some SMEs and investors, the broader picture suggests challenges ahead for property, construction, and entrepreneurial confidence, underscoring the importance of strategic planning in response to the changes.