Hampshire Chamber responds to 'no harm' Budget

Responding to today’s Budget, Ross McNally, Hampshire Chamber Chief Executive and Executive Chairman, said: “From a business perspective, the Chancellor was treading water and playing it safe. We recognise that the long-term national debt challenge cannot be resolved overnight, and this was, as predicted, a ‘no harm’ Budget. But the reality is that businesses have already been harmed by previous Budgets, and today’s announcements do little to fundamentally change the outlook or move the dial on business confidence, investment and growth.

“The Chancellor has presented this as breathing space and a downpayment on renewed hope for the future. Businesses will welcome such reassurance but still need a stable, competitive environment in which to invest, recruit and grow.

“Measures to bring down energy costs, including action on standing charges and the extension of fuel duty relief, are helpful. Reforming the energy system and ensuring new projects reduce bills when connected to the grid are also sensible steps. However, we wanted to see more targeted fiscal measures, including enhanced capital allowances and tax incentives for businesses investing in renewable energy, grid innovation and carbon-reduction technologies. These would help unlock private investment, strengthen resilience and accelerate the transition to a sustainable economy.

“The increase in small business rate relief from £12,000 to £18,000, alongside support that will remove thousands of businesses from the rates system altogether, is welcome. High streets, hospitality and leisure businesses have faced sustained cost pressures, and this support should make a tangible difference. The ambition for local authorities to retain 100% of business rate income by 2030 is also worth pursuing, provided it gives local leaders the resources and flexibility to support economic growth.

“For Hampshire particularly, the commitment to increase defence spending sustainably towards NATO commitments will be important to our defence and advanced engineering supply chains.

“Ultimately, this Budget offers some breathing space, but not yet the step change businesses need. The test will be whether these measures translate into lower costs, greater confidence and sustained investment. Hampshire businesses need a clear, long-term growth strategy that turns cautious stability into genuine opportunity.”