Leaders from the world of politics and business have reacted to Rachel Reeves’ first Budget as Labour chancellor.
Today (30 October), Reeves announced increased taxes, more spending on health and investment, and a host of other initiatives.
‘Mixed bag’ for traders
Marco Forgione, director general of the Chartered Institute of Export & International Trade, said that the budget was a “mixed bag” for international traders.
“We welcome policy announcements on long-term measures for sectoral growth, including the development of UK manufacturing strengths, as well as specific regional investment and infrastructure development.
“Particularly, the confirmation of funding for the East Midlands Investment Zone and the designation of five new customs sites in existing Freeports – including designated tax sites in the Celtic Freeport – will help attract more inward investment and support business growth.”
Forgione also said that SME members had expressed “real concern”, particularly in relation to employer National Insurance Contributions (NICs) and “over wage rise affordability”.
“We will look to ensure the voices of these members are heard, particularly ahead of the government’s Small Business Strategy Command Paper in 2025, announced in the Autumn Budget paper today.
“Many of the policies announced in the Budget are closely intertwined with the creation of the government’s modern Industrial Strategy and we are pleased to be actively working with our members and our community of trade experts to ensure that the government is receiving high-quality, tailored and practical inputs to this Strategy.
“By doing this, we aim to advocate for policies which provide the best environment for UK exporters.”
Party responses
Rishi Sunak, making his last major appearance as leader of the opposition Conservative Party, said that “this is a tax, borrow and spend Budget”.
He attacked the Labour government for releasing “a tidal wave of anti-business regulation” and that “working people” would pay the price.
“Today the chancellor and PM have done what they were always planning to do but chose to keep hidden from the British people.
“Far from reducing taxes, as a result of today’s Budget, taxes will rise to the highest level in the history of this country.”
Ellie Chowns, Green MP for North Herefordshire, said that the chancellor’s decision not to mention ‘climate’ or ‘nature’ once was “unforgivable”.
“Our entire economy rests on the health of our environment and this was a chance to reset to deliver a livable future.”
A scheduled rise in plastic packaging tax was included in the full Budget report, while the government has also published its response to a consultation on the UK’s new carbon border adjustment mechanism (CBAM) today.
Liberal Democrat leader Ed Davey welcomed the increased health spending but said that the Budget ignored the “elephant in the NHS waiting room” in social care.
First minister of Wales, Eluned Morga, hailed the budget as proof of the two Labour governments working together.
NICs
The Federation of Small Businesses (FSB) described the raising of the employment allowance as a “huge help for small firms”.
Following changes to capital gains tax (CGT) and other aspects of fiscal policy, there were concerns over the long-term impact on investment, however.
“Any budget with increases to CGT, gradual increases to BADR and taxes on investors going up is never easy, and today will be hard for founders seeing taxes on their businesses rise,” said Dom Hallas, executive director of the Startup Coalition.
“But we appreciate that the government has listened to ensure the entrepreneurs’ biggest fears have not materialised and some balance has been struck, including maintaining all important R&D investment.”
Gary Smith, general secretary of the GMB union, said: “After 14 years of chaos and failure, it’s great to see a serious budget that focuses on the big issues facing our country.”
“Much needed money for schools, including [special educational needs and disabilities], hospitals and a hefty wage rise for millions of low paid workers is something to be celebrated. And there is good news on investment in hydrogen and carbon capture and storage.”
Business and markets
Edmund King, president of the AA motoring organisation, said Reeves’ decision not to raise the fuel duty would provide “a big relief” for drivers.
“Since Covid and the start of the Ukraine war, ‘perma-high’ pump prices have inflicted road fuel costs that were well above anything motorists had endured before”.
However, Nuno Teles, Great Britain managing director at drinks giant Diageo, slammed the government for raising alcohol duty on non-draught drinks in line with inflation from February 2025.
“Instead, the government has broken this promise and slammed even more duty on spirits. This betrayal will leave a bitter taste for drinkers and pubs while jeopardising jobs and investment across Scotland.”
