Budget 2025: 'Not business friendly' - Shropshire leaders react to Chancellor's speech
Chancellor Rachel Reeves has delivered a broad Budget with measures for income tax, training and skills, the minimum wage and electric vehicles among many others.
Business leaders across Shropshire, from lawyers to engineers and construction contractors, have been reacting with a mix of emotions, from support to outright disdain.
Here, we gather together some of their views on what was a huge day for the government and the business community.
Ruth Ross - Chamber Chief
Ruth Ross, chief executive of business body Shropshire Chamber of Commerce, called the Chancellor's speech "not what you would describe as business friendly".
"But it seems that many Shropshire companies were expecting it to be worse," she said.
"The Chancellor has listened to the business community's calls and made the right choice by not piling major new tax rises on businesses' shoulders which will go some way to calming nerves.
"Businesses will also welcome support for youth employment, stamp duty relief, protection for capital spending, a reduction in business rates multipliers and some investment tax breaks.
"They will be worried, however, about salary sacrifice changes, mandatory wage increases and retention of the energy profits levy which will maintain cost pressures.
"Alongside this, we have seen UK-wide business support funding of almost £1 billion axed. That risks further regional inequality and damage to rural economies such as Shropshire."
Tim Lloyd - Surveyor
The owner of a quantity surveying firm said the Budget had failed to meet the concerns of many in the construction sector.
Tim Lloyd, who runs CQS Solutions which has bases in Shropshire and Mid Wales, said the sector was increasingly frustrated at the government's failure to fund the construction projects it had already promised.
He said: "The government was elected on the back of promises to build 1.5 million new homes and fund major infrastructure projects.
"But we have yet to see many signs of those promises being delivered or of very many new public sector tenders coming through. This Budget could have been an opportunity to change that.
"I wanted to see real action to make it more affordable to employ new people, develop the skills and training we urgently need and create the economic conditions to drive growth."I certainly didn't hear enough to make me think things will change dramatically in the next 12 months and that was disappointing."
Neil Lloyd - Solicitor
The chief executive of law firm FBC Manby Bowdler said the Budget was unlikely to provide the business community with confidence.
Neil Lloyd, head of the firm which has offices in Shropshire and the West Midlands, said Rachel Reeves had damaged her credibility with a series of U-turns before the speech.
He said: "The Chancellor found herself in a very tight corner - partly through her own doing - and the speech very much reflected that.
"Business confidence is very fragile at the moment and the Chancellor's U-turn over income tax spooked the markets even more and has certainly undermined her standing with business leaders.
"We know businesses have been delaying investment and hiring decisions while they waited to see what the Chancellor had to say."I'm not sure the speech will inspire the confidence we need to get the economy growing again."
Alasdair Hobbs - Employment Lawyer
Alasdair Hobbs is the managing director of Human Results in Telford, a consultancy specialising in HR and employment law.
An employment lawyer for 35 years, he said the increase in the minimum wage would be yet another hit for employers.
"So many clients I speak to are actually very busy and should be doing quite well but there's no margin for growth," he said.
"Minimum wage hikes, coupled with the pending Employment Rights Bill and last year's national insurance increases, will have a major impact on employers.
"The real issue isn't any single measure - it's the cumulative burden. Employers are being hit from multiple directions simultaneously, making it harder to invest in growth, training or new hires."
Stuart MacKenzie - Civil Engineer
Civil engineering and construction contractor McPhillips said the Budget fell short of the mark.
Director Stuart MacKenzie warned businesses had faced a nervous wait with leaked details and U-turns leading to a sharp decline in construction activity.
He said: "Confidence across the sector has been knocked with so much speculation and unfortunately the announcements have not gone far enough to restore the stability we needed.
"The construction industry is impacted by almost every part of the economy so any measures which cause taxes to rise takes money out of the economy, puts pressure on businesses and will continue to stall growth.
"Changes to salary sacrifice and minimum wage rises on top of the already hefty national insurance hike will cause a mammoth administrative headache for businesses and will bring additional costs at a time when they want to be focused on investing.
"The only good news we can take is the Chancellor's commitment to skills and new measures on apprenticeships."
Jennifer Hughes - Engineer
Engineering firm Transicon said the Budget was disappointing and lacked tangible support for manufacturers in the wake of the Industrial Strategy.
Jennifer Hughes, general manager of the Telford-based firm which works with manufacturers such as BMW, Tata Steel and Muller Dairy, welcomed support with energy costs and access to finance but warned the measures were not enough to restore confidence and growth.
She said: "The cumulative impact of increased national insurance contributions, uplift in national minimum wage and corporation tax is already squeezing margins for many businesses and the additional tax and wage rises will take more money out of the economy and lump further pressure on businesses.
"We're disappointed there was no real recognition of the burden industry is facing and the impact this is having on the sector's ability to invest in skills, innovation, AI, cybersecurity and technology.
"With the launch of the Industrial Strategy earlier this year, we had been hopeful that this Budget might deliver more in terms of funding for manufacturers, particularly SMEs.
"We had also been keen to see a reversal to the SME R&D tax relief which is crucial if we want to encourage small firms to push boundaries and invest in new solutions. We were however pleased to see mention of funding for skills and welcome new measures on apprenticeships that will support SMEs to train the next generation."
