Our legal and business experts have provided their reaction to the Autumn Budget delivered by Chancellor Rachel Reeves on 26 November across a wide range of topics.
Construction
Chris Heathcote, director at Gateley Vinden, said: “The Chancellor’s pledge of delivering £13bn of flexible funding for seven mayors and £120bn for vital major infrastructure projects, including the Northern Growth Corridor, in the Autumn Budget is welcome news for the construction industry.
“It’s also great to see an emphasis on unlocking transformative developments in education and healthcare across the UK, something which is crucially needed to help regions shape sustainable, future-ready communities and meet the evolving needs of the population.
“This bold approach to devolution, alongside a strong financial commitment to government funding, with a £28bn annual investment envelope, underscores the role of infrastructure as the cornerstone of the UK’s economic and construction sectors. Hopefully, this commitment will ensure that major projects continue to progress, safeguarding jobs and driving long-term growth at a time when the industry and construction supply chain needs essential stability.
“Further support for apprenticeships funding for SMEs will also aid with helping to attract new talent into the industry too. At Gateley Vinden, we really value our quantity surveying apprenticeship programme and think this route is essential for the industry.”
Adrian Gladstone, director at Gateley Vinden, commented: “The Chancellor announced in the Autumn Budget that training in apprenticeships for those under 25 will be free to SMEs. The skills shortage affecting the construction industry – both surveyors in consultancy and skilled trades – has been well documented and is becoming ever more acute. Measures to support the training of young people into these areas will be a welcome tool to contribute to tackling this shortage.
“However, the absence of any other measures to boost housebuilding was notable and, coupled with further tax rises announced on property income, will apply further pressure on private landlords which risks them exiting the market and further worsening the already limited supply of affordable rental options for tenants.”
Housing
James Frost, senior quantity surveyor at Gateley RJA, said: “The Chancellor’s Autumn Budget introduces significant shifts for housing delivery through tax reforms, council tax revaluation and energy efficiency incentives which will reshape the economic landscape. For developers and housing associations, cost certainty and compliance are now critical.
“Stamp duty relief will be a welcome step for first-time buyers. Yet with rising build costs and tax changes, robust financial planning will be critical. The expertise of quantity surveyors, employer’s agents and clerk of works will be vital to help guide clients through these changes. Accurate and considered budgets are key for managing risk and helping developers and housing associations navigate these economic shifts and deliver viable projects.”
Business Rates
Ben Yates, senior associate at Gateley Legal, commented: “The Government’s proposed reforms mark a noticeable shift in the business rates landscape. Reductions worth £900m annually will certainly ease the burden on retail, hospitality and leisure, though this is being offset by higher charges on large warehouse properties. A £4.3bn support package is hoped will cushion those hardest hit by revaluations, but the devil will be in the detail. For warehouse investors and tenants, increased rates may place unwelcome pressure on rents and yields, potentially resulting in a drive in commercial property investment shifting towards smaller properties. Landlords of properties benefitting from reduced rates may see an opportunity to raise rents, though upward‑only rent review clauses are set to be banned. On a positive note, expanded enterprise tax incentives, UK Listing Relief, and enhanced investment allowances should help to stimulate growth, attract talent, and reinforce the UK’s competitiveness.”
Planning
Matthew Scudamore, planning partner at Gateley Legal, said: “It’s pleasing to see the Government recognise that increasing resource for local planning authorities is crucial to unblocking delays in the planning system. Today’s announcement sees £48m of extra funding to boost capacity and the Government anticipates there will have been 1,400 recruitments across the planning system by the end of its term. However, most developers will recognise that this will merely make a dent in the overall number of undetermined planning applications stacking up. The situation isn’t helped by new layers of regulation constantly being applied – the most recent being biodiversity net gain, which many planning authorities are still struggling to get to grips with. The Planning and Infrastructure Bill reforms may have a small streamlining effect, but even then, planning officers need to spend time getting up to speed with it.
“If the Government really wants to speed things up, it either has to remove large amounts of the regulations which currently apply to planning applications, or it has to massively increase the funding available to local planning authorities. Unfortunately, I don’t think we can guarantee on either happening and so I suspect we might still be in the same position in 2029 when the next election comes around.”
Pensions
Phil Jelley, pensions partner at Gateley Legal, said: “The Government’s announcement of plans to cap the amount of pension contributions made via a salary sacrifice scheme will come as a disappointment to employees in the private sector across the UK. The scheme, where employees benefit from the National Insurance savings, has been capped at £2000 per annum from April 2029, which will result in the reduced pensions savings for employees, at a time when it is widely acknowledged that workers in the UK are under saving for their retirement.
“The introduction of the £2000 cap on pension contributions will lead to smaller pension pots for future retirees, meaning they will likely have a greater reliance on the state in retirement, which will place a greater strain on future generations who will inevitably need to fund that support.
“Following this change, against the backdrop of a struggling economy, employers will also seek to reduce their pension costs, resulting in reduced pension pots as well as potential reductions in pay increases and headcount.”