Lancashire businesses react to Autumn Budget

The response from Lancashire businesses to a Budget heavily focused on giving businesses ‘breathing space’ was somewhat cool.

Chancellor John Healey used the phrase no less than 13 times throughout his hour-long Commons speech, in which he put energy reform and support for high street businesses high on the agenda, along with backing for entrepreneurs and more major devolution measures. Here we gauge the reaction from business leaders in the county.

 Daniel Miller, managing director of Blackburn based temperature-controlled vehicle manufacturer CoolKit, said while the announcement of a freeze on fuel duty gave fleet operators breathing space, it ‘doesn’t take the pressure away’.

He added: “With diesel prices as high as they are, margins are continuously being squeezed, especially for smaller fleet operators. What operators desperately need is long-term certainty about what they'll be paying, so they can plan around it rather than wait for the next fleet cycle change."

Elizabeth Porter, managing director at Brysdales in Chorley, said: “Lancashire businesses certainly don’t lack ambition. We want to invest, grow, employ people, and embrace new technology, but we need the confidence to do it.

“There were some positives, but the reality for businesses like ours is that the cost of employing people and running a business continues to rise.

“If the government genuinely wants growth, it needs to back the businesses that are prepared to invest and create jobs, and give us the stability and confidence to get on with it.”

Ben Ritherdon, managing director of Darwen based manufacturer Ritherdon and Co, reflected on the chancellor’s pledge on greater transparency on pay in job adverts.

He said: “He only hinted at this but I would want to see more.  It may be well intentioned but could potentially be very problematic for a business.

“If employees have the right to see the details of their colleagues’ pay and salary packages that could be a minefield in terms of morale and office politics.”

Babs Murphy, chief executive at North and Western Lancashire Chamber of Commerce, said success would be judged ‘not by announcements alone, but by delivery’.

She said: “Employers continue to face significant challenges including rising employment costs, skills shortages, inflationary pressures, energy costs and ongoing uncertainty around future regulation.

“The reduction of rate relief is helpful but not ground breaking. It was essentially a ‘steady as she goes’ Budget, rather than a Budget for businesses hoping for radical announcements which could transform growth.”

East Lancashire Chamber of Commerce chief executive Simon Brierley said: “These are small steps in the right direction, but we need bigger strides on growth.

“There’s plenty in the Budget that businesses can welcome, not least that we haven’t seen another significant tax hit landed on East Lancashire employers.

“Business rates relief, better access to finance and support for entrepreneurs are all positive steps. But businesses across East Lancashire are ambitious. They want to invest, recruit, innovate and grow. What continues to hold too many back is the sheer cost of doing business, particularly energy and employment costs.”

Emma Swan, head of the commercial division at Forbes Solicitors, said: “The chancellor’s commitment to save businesses £800m by cutting red tape will be welcomed by firms looking to focus on growth, innovation and investment.

“However, the detail matters. Until companies understand exactly which regulations and reporting will be streamlined and how changes will work in practice, the benefits remain unclear. Government must provide clear, timely guidance to ensure simplification genuinely reduces burdens and avoids any changes creating uncertainty and inefficiencies for businesses.”

Matthew Johnson, partner at Preston based accountancy and business advisory firm WNJ said: “The big question is just how much of that space he has delivered as businesses and households struggle to weather the economic storms sparked by global conflict.

“Taking 70,000 more out of paying business rates altogether must be welcomed but there was much more that could have been done. Raising that relief to £25,000 would have removed 250,000 businesses from paying rates.

“There were positive moves around entrepreneurship, including the new ‘Founders Relief’ in Capital Gains Tax and a young entrepreneurs’ allowance. Any measures to back those who want to build a business is applauded.”

Claire Astley, corporate tax director at accountants PM+M in Blackburn, said: “The announcement that that the Enterprise Management Incentive scheme will be doubled should be welcomed by those SMEs wanting to retain and incentivise key employees.

“The £140m investment supporting strategic British AI firms, alongside efforts to remove unnecessary regulation and barriers to trade, could help the UK turn its innovative strengths into commercial success.

“Further incentives for businesses investing in AI, automation, digital infrastructure and employee training could also improve productivity and help smaller firms embrace new technology.

“On a slightly more pessimistic note, I do feel like a lot of announcements were aimed at startups and small high street businesses, but there was less clarity around long term business ownership and disposals. Moving forward, I believe that needs to be addressed.”

Chris King, legal director with Preston based employment law, HR and health and safety firm AfterAthena, part of Napthens Group, said: "While there is another national minimum wage increase, it’s significantly lower than previous rises and in an age group which often represents the vast majority of employees in the leisure and hospitality sector.

“That coupled with the business rate changes means at least some positive news for a sector which has been hit hard by previous budgets. We do have to set that in the context of the wider changes to the employment law landscape though with the continuing implementation of the Employment Rights Act 2025 which has added a significant further compliance burden to employers."