#autumn-budget

#autumn-budget

Karen Betts, Chief Executive of the Food & Drink Federation (FDF) said there is a shift in shoppers habits as people are tightening their belts and are not continuing with their normal festive shopping habits. Betts told the i, "I think what we're seeing... is that where people are buying those items now, they tend to be within their same basket spend, so not as an add-on to a basket that they would otherwise have bought."

Despite this renewed confidence, many SMEs are still facing the same barriers they faced at last years' Budget and are calling on the Government to unlock productivity in this month's Budget. Top of the list is help with high energy costs (40%), rising to over half (54%) for medium-sized firms. Meanwhile, a third (34%) want more tax incentives for innovation and investment, highlighting areas of policy change that could help fuel business productivity and future growth.

A new survey by Employment Hero found that 86 per cent of 1,000 business leaders are worried about what the Budget will mean for their companies, with 59 per cent saying they believe the government does not take the needs of small businesses into account when setting fiscal policy. The concern comes after employer National Insurance contributions (NICs) rose from 13.8 per cent to 15.05 per cent in April - a move that many SMEs say has already strained their finances.

We will do what's necessary to protect families, public services and hand down secure economy to next generation.

Helen Dickinson, the chief executive of the BRC, said the looming budget had affected spending alongside milder weather, while growth in the value of food sales was mostly down to rising grocery prices. Rising inflation and a potentially taxing budget are weighing on the minds of many households planning their Christmas spending, she said. The BRC said UK total retail sales increased by 2.3% year on year in September, compared with a growth rate of 3.1% the previous month.

In a report that will be closely scrutinised in the Treasury, it said an additional 6bn a year could be raised through a policy to cut employee national insurance by 2p, with a corresponding increase for all income tax bands. This is because income tax applies to a wider group of taxpayers than employee national insurance including pensioners, landlords and self-employed people.

Over 90% of employers think that the chancellor will place restrictions on pensions salary sacrifice schemes at the upcoming Autumn Budget, according to a new survey of mid-market businesses. Conducted by Censuswide for BDO, the survey found that almost half (49%) of C-suite respondents believe restrictions are 'quite likely' while 45% consider them 'very likely'. Only 6% see an equal chance either way, while less than one per cent think restrictions are unlikely.

Reeves is thought to be focusing on fiscal responsibility while aiming to stimulate economic growth. Her initial statements suggest an inclination towards maintaining existing tax policies without introducing major increases: this approach aligns with the desires of many SMEs, who are seeking stability in a tumultuous economic landscape. However, there are concerns that this might not go far enough in addressing the immediate needs of small businesses, especially in terms of financial relief and support.

Obviously taxation policies are a matter for the chancellor of the exchequer, and she will set out more detail in the budget later this year. I want to make sure that our budget is based on our Labour values, and that is what Rachel Reeves will deliver. It's not for me to comment on speculation. Our focus is on driving growth in the economy and delivering for working people up and down the country.

"When you cut out the blather, isn't the reality that this Labour Government has condemned us to higher taxes, more debt, fewer jobs, more pain for businesses right up and down our country?"