Autumn Budget 2025: Industry Experts React To The Budget

The Autumn Budget has been announced, and it has set out what the government says are necessary choices for the country. It focuses on household bills, wages and public investment while keeping borrowing under control. Figures across the tech and finance sectors reacted to the plans and the reactions give a picture of how the changes may be felt.

Ross Cafferkey, Founder and CEO of Research Clever, comments: “The budget has delivered a double-edged sword for business. Free funding will be provided to SMEs to train apprentices who are under 25, bolstering team growth and development. However, the same SME owners will find their dividends taxed by an additional two percentage points from next year.

“We’ve been monitoring business sentiment ahead of the announcement and our figures showed that the business community was more optimistic than the general population going into the budget, and 7 out of 10 expect their finances to improve next year. It will be interesting to see the reaction from the business community over the coming days.”

 

What Did The Autumn Budget Say About Everyday Costs?

 

The government said that the Budget “takes the fair and necessary choices to deliver on the government’s promise of change”. It said inflation will come down and energy bills will fall from April. It expects households to see around £150 off bills on average. The Budget also brings a one year freeze to regulated train fares and prescription charges.

Fuel duty will stay lower until August 2026. The Budget said rail commuters using the most costly routes could save more than £300 a year. People on the State Pension will see payments come up 4.8% in April 2026 which the government said gives pensioners up to £575 more a year.

Wages for the lowest paid will come up to £12.71 per hour in April 2026. The Office for Budget Responsibility said the overall package lowers inflation directly next year and the Treasury said this is the biggest such fall at a fiscal event outside a crisis.

 

How Is The Budget Helping People Across The UK?

 

The Chancellor said investment will target industry in all parts of the country. She announced two AI growth zones in Wales to bring more than 8,000 jobs. Northern Ireland will get £17 million for trade and market strength. Rachel Reeves said: “We have changed government procurement, so we can buy British when it’s crucial to our national security including … today for AI, driving innovation and building that great industry here in Britain.”

Local leaders are set to share £13 billion for skills, business support and transport work. Reeves also said: “These budget measures are the right choices for a fairer, a stronger, and a more secure Britain.” Growth is forecast at 1.5% which the announcement said shows better momentum than expected.

Transport plans remain in place including the Lower Thames Crossing and links between northern towns and cities. Rail upgrades in the Midlands and the TransPennine Route stay confirmed.

Tech figures backed progress in public services. John Lucey at Cellebrite said: “AI and automation are essential to streamline time-consuming tasks such as reporting and data analysis to save hours and millions in efficiency.” Stuart Harvey at Datactics said: “AI is revolutionising public services to drive greater efficiency, innovation and economic growth.” Blake Richmond at Resonate Group said freezing rail fares “keeps train travel affordable” and “supports the wider economy”.

 

What Is Happening With Tax And Family Support?

 

Personal tax thresholds will stay frozen. Research from Creditspring said “35% of Brits are already worried about rising income tax or frozen thresholds ahead of the Budget” and noted that many people face unexpected repair bills.

The scrapping of the two child limit in Universal Credit is meant to lift 450,000 children out of poverty. Sheila Flavell at FDM Group said: “Scrapping the two-child benefit cap will be hugely beneficial for parents who want to return to work but have been held back by financial pressures.”

Better off households will see taxes come up on property income and dividends. A High Value Council Tax Surcharge will apply to homes worth over £2 million. The government said these choices help make payments fairer for working people.

More industry experts react to the Autumn Budget below…

 

Our Experts:

 

• Jo Varsani and Sanjay Patel, Co-founders, The FSS Group
• Mark Skelton, Chief Technology Officer, Node4
• Chris Eldridge, CEO, Robert Walters UK&I
• Lee Edwards, VP EMEA, Amplitude
• John Phillips, General Manager EMEA, FloQast
• Nishi Patel, Managing Director, N-Accounting
• Maxine Eunson, UK Public Sector Lead, 8×8
• Samantha Lenox, Head of Employee Share Schemes, Harper James
• Tamsin Powell, Consumer Finance Expert, Creditspring
• Sheila Flavell CBE, COO, FDM Group
• Blake Richmond, CEO, Resonate
• John Lucey, VP EMEA, Cellebrite
• Stuart Harvey, CEO, Datactics
• Matt Dawes, Head of Enterprise, HALOS
• Dominic Carroll, Director Portfolio, e2e-assure
• Chris Newton-Smith, CEO, IO (formerly ISMS.online)
• Edward Lewis, CEO, CyXcel
• Leo Labeis, Founder and CEO, REGnosys
• Dominic Holmes, Principal, Value & Strategy EMEA, Cornerstone
• David Woon, Head of Net Zero Engineering, Ennovus Solutions
• Declan Doyle, CEO, Bidvest Noonan

 

Jo Varsani and Sanjay Patel Co-founders, The FSS Group

 

 

As a small business owner, this year’s budget feels heavy. With tax thresholds frozen and higher taxes on our savings and dividends, it feels like we’re being squeezed from every angle. We’re working harder than ever — juggling rising costs, staff, stock, and the daily pressure of keeping a business alive.

Instead of support, these changes mean less breathing room, fewer opportunities to reinvest, and more stress on families who depend on their business to survive. Small business owners are the backbone of the UK economy, yet once again we’re left to absorb the impact.

 

Mark Skelton, Chief Technology Officer, Node4

 

 

“It is great to see the government doubling down on its commitment to embrace AI, but words must be translated into action. We’re yet to see any remarkable changes since the last Budget, which leads to concerns that the investment isn’t being spent effectively. One of the biggest challenges is that many AI projects are technology-led rather than problem-led. Throwing money and tools at an issue without understanding the business need or desired outcome rarely delivers results. AI can only create value if it is integrated thoughtfully into business processes, with strong IT-business collaboration, skilled architects who understand both domains, and robust change management.

“Change management is critical because humans are often the biggest barrier to AI adoption. Employees may fear job loss, resist altering long-standing processes, or lack the training to use new tools effectively. Without addressing these cultural and behavioural factors, even the most sophisticated AI initiatives fail to deliver real outcomes. Embedding AI requires coaching, process redesign, and incentives to encourage adoption, not just technology.

“This is particularly true in the public sector, where entrenched processes and a risk-averse culture can stall innovation. AI has enormous potential to improve efficiency, especially when it comes to streamlining administrative workflows in the NHS, legal system and civil service, but only if we empower people to embrace change and focus on real-world outcomes. Government investment can be transformative, but only when paired with a deliberate focus on people, processes, and measurable impact.”

Freeze on income tax thresholds

“The freeze on income tax thresholds will have a significant impact on businesses, but the government’s decision not to introduce new business taxes or make further changes will allow companies to plan with more confidence and focus on growth.

“Businesses simply can’t afford more disruption. We’ve already seen how measures from the last Autumn Budget, particularly the changes to National Insurance, have driven up costs and impacted hiring decisions. At the same time, businesses have a responsibility to support their employees through cost-of-living pressures by continuing to offer deserved promotions and pay rises. The freeze on income tax thresholds is pushing more employees into higher tax brackets, meaning companies must pay even more to ensure they see a meaningful increase in take-home pay. It’s a compounding effect that’s squeezing margins across every sector. For many companies, that has meant slowing down recruitment or rethinking investment plans, which has ultimately hindered business growth.

“Stability helps businesses continue to invest in people, innovation, and digital transformation without having to constantly reassess financial forecasts or hiring plans. We would like to see a longer-term roadmap toward reducing business costs and incentivising investment, but this Budget’s restraint is a step in the right direction. A stable environment – not more fiscal turbulence – is what will drive productivity and confidence back into the economy.”

 

Chris Eldridge, CEO, Robert Walters UK&I

 

 

“The Budget places additional cost pressures on businesses and will likely prompt further caution in hiring and a shift toward contract or interim talent to manage long-term costs. With tax thresholds frozen until 2030-31 and raised dividend taxes, both workers’ take-home pay and employer obligations will be affected, particularly for mid- and senior-level professionals.

“Although the government signals support for scale-ups through listings relief and investment incentives, fiscal pressures risk limiting innovation and straining emerging businesses, including IT contractors, start-ups, and SMEs.

“Early-career talent faces ongoing challenges, with rising costs having already squeezed graduate intakes, apprenticeships, and internships. The support offered to smaller businesses hiring younger people will help provide crucial protection to junior or entry‑level roles. Minimum wage increases also provide some relief but may be offset by tighter business cost management.

“Despite being framed as a cost-of-living Budget, frozen thresholds, salary sacrifice caps, and higher taxes risk leaving many worse off. Addressing these pressures is essential for the government to meaningfully boost hiring confidence, support growth, and maintain UK competitiveness.”

 

Lee Edwards, VP EMEA, Amplitude

 

 

“Now the Chancellor has delivered the Autumn Budget, the focus for government and industry must remain on technology and data, which are now central to productivity, growth, and resilience across the economy. With the digital sector contributing significantly to the UK’s economic performance, today’s announcements will be closely watched for their impact on investment certainty, infrastructure, and scale up support.

“The introduction of a three year stamp duty holiday for companies listing in the UK is a clear signal that government wants to make Britain a more attractive place for innovative firms to grow and stay. Combined with the OBR’s improved growth forecast, it reflects a recognition that long term economic strength will depend on backing the founders and high growth companies driving new technologies.

“The real test will be whether these commitments translate into measurable outcomes – whether businesses and public services can turn technology and data investment into improved productivity, stronger services, and sustainable growth.”

 

John Phillips, General Manager EMEA, FloQast

 

 

“The budget offers a split-screen view of the UK economy: commitments to AI on one side, and tax rises that could tighten the margins for innovation on the other.

“Paying down national debt is a sound long-term policy, but the added tax burden will squeeze finance teams already under pressure. That makes operational integrity more critical than ever. Organisations will need clarity, accuracy, and smarter workflows
to navigate the constraints.

“Investments in AI can also help to optimise financial discipline. It shifts the account role from “preparers” to “reviewers” and allows routine, rule-based work to be automated with high accuracy, freeing accountants to focus on strategic analysis, resource
allocation, and growth initiatives.”

 

Nishi Patel, Managing Director, N-Accounting

 

 

“Nothing in the Budget was a surprise because it had all been leaked already. What was surprising was the OBR’s early release, which only highlights how chaotic that department has become and reinforces the view that it’s no longer fit for purpose.

“For businesses, the biggest frustration will be the cap on salary-sacrifice pension arrangements. Employers will now face higher National Insurance costs just to continue offering the benefits they already provide. The change to ISAs — where £8,000 of the £20,000 allowance must now go into a stocks and shares ISA — is predictable. With the government struggling to attract buyers for its own debt, this move effectively funnels risk-averse savers towards bonds as the next safest option.

“The 2% dividend tax rise is a major blow for small business owners, many of whom already operate on tight margins and pay themselves via lower salaries and higher dividends. This comes alongside the new pay-per-mile levy on electric vehicles, which hits business owners again, as EVs are a common choice for company cars.

“There’s further pressure on investment too, as relief on asset purchases is being reduced. It’s effectively another tax on growth. And while the government is promoting free apprenticeship training, it feels hollow when set against the inflation-busting increases in minimum wage that employers are expected to absorb.

“I’ve grown fairly numb to Budgets over the years, but this one genuinely makes my blood boil. It targets business owners more heavily than any other group, and it’s hard to see how that helps an economy already struggling for momentum.”

 

Maxine Eunson, UK Public Sector Lead, 8×8

 

 

“The one thing that’s certain about 2026 is uncertainty. Whether it’s a cyber incident, a failed AI project, or a change in government direction, any of these could spark sudden policy swings.

“A single high-profile failure could freeze innovation budgets overnight. Conversely, a major success could see the Treasury double down on digital acceleration. The challenge for leaders will be to stay agile and be ready to pivot policy or investment in response to whatever comes next.”

 

Samantha Lenox, Head of Employee Share Schemes, Harper James

 

 

“This is fantastic news for SMEs using EMI schemes to recruit, incentivise and reward employees, as it allows them to better compete for and retain the talent they need to grow. The higher limit gives companies greater flexibility when awarding EMI options, both for new employees and for topping up grants to existing option holders.

“The Budget also didn’t introduce any changes to the tax treatment of Employee Ownership Trusts. Selling shareholders can still benefit from a 0% capital gains tax rate when selling their business to an EOT, provided the sale meets the qualifying conditions. In comparison, a trade sale will be subject to a headline capital gains tax rate of 24%, with the first £1,000,000 of gains qualifying for business asset disposal relief at a reduced rate of 18% from 6 April 2026.

“This is welcome news for those currently considering or undertaking an EOT sale, as they can continue to rely on the existing favourable rules. It’s worth noting that the 2024 Budget did introduce measures to ensure EOTs are used for genuine commercial reasons and not solely for tax benefits. Nonetheless, EOTs remain a highly attractive option for sellers who value increased employee engagement, productivity gains and the opportunity to safeguard their business’s legacy.”

 

 

Tamsin Powell, Consumer Finance Expert, Creditspring

 

 

“The extension of the income tax threshold freeze will mean that, as wages rise, more people are dragged into higher tax brackets, effectively reducing their real income.

“While this measure boosts Government revenue, it comes at a cost to working households whose pay packets are already stretched thin. Combined with rising prices for essentials, this will leave millions feeling worse off, even if their nominal income increases.

“Any fiscal plan aimed at supporting working families needs to take into account the cumulative impact of tax freezes, rising living costs, and slow wage growth. Without that, disposable incomes will continue to shrink.”

 

Sheila Flavell, CBE, COO, FDM Group

 

 

“Scrapping the two-child benefit cap will be hugely beneficial for parents who want to return to work but have been held back by financial pressures. The cap had made it difficult for parents to get back into work and rebuild their careers after a break.”

This new lift will ease the burden on families and open doors for parents who simply need the right support and flexibility to re-enter the tech sector. With our Returners Programme, parents who have had career breaks, whether they have two, three or more children, can access high-quality training, personalised support and a clear route back into the technology workforce.”

 

Blake Richmond, CEO, Resonate

 

 

“Our cities and regions are essential for growth, and freezing rail fares keeps train travel affordable, which not only eases the cost of commuting for workers but also supports the wider economy by encouraging spending, connecting people to jobs, and strengthening leisure market.”

“We welcome further investment in data technologies and AI, which are key to modernising rail industry processes. By adopting smarter, data-driven systems, creates more opportunities to develop AI to optimise these flows across an increasingly connected transport system, supporting long-term economic growth and regional development.”

 

John Lucey, VP EMEA, Cellebrite

 

 

“The tidal wave of AI isn’t slowing down and for public sector organisations, particularly police forces, there is a growing pressure to reduce time to evidence. To achieve this, AI and automation are essential to streamline time-consuming tasks such as reporting and data analysis to save hours and millions in efficiency.

“Especially when connected to public safety, AI always needs human verification and oversight. People must be the ones to govern AI’s use cases, using it as an assistant to speed up otherwise menial and manual tasks. For policing, this means digital forensics teams can leverage AI to shorten case times through content classification, evidence prioritisation and automated device extraction to expedite verdicts.”

 

Stuart Harvey, CEO, Datactics

 

 

“AI is revolutionising public services to drive greater efficiency, innovation and economic growth, but to fully harness these advancements, the UK must prioritise strategic investment in data infrastructure and the responsible deployment of AI. Without robust systems to manage, analyse, and secure data, businesses and government departments risk falling behind in an increasingly competitive global market.

“A strategic investment in data governance will help boost productivity and ensure the UK remains at the forefront of the AI boom while ensuring economic stability and long-term prosperity.”

 

Matt Dawes, Head of Enterprise, HALOS

 

 

“Retailers across the UK are navigating a challenging security environment, with shoplifting rising and frontline teams reporting more frequent verbal and physical abuse. These issues have been building over time and are now a daily concern for many stores.

“As we head into the festive period and footfall increases, those pressures are felt more sharply on the shop floor. The Autumn Statement reinforces that retailers will continue operating under tight cost conditions, so investments need to deliver clear, practical impact.

“Body-worn cameras do exactly that – acting as a visible deterrent, giving staff added confidence, and providing reliable evidence when incidents need to be investigated. For retailers focused on protecting people, stock and customer trust, they’re becoming an increasingly important part of modern store safety.”

 

Dominic Carroll, Director Portfolio, e2e-assure

 

 

“If the UK wants growth, it must fund resilience. Cyber attacks are now economic events – JLR and M&S proved that. Supporting businesses to detect and contain threats faster will pay for itself in national productivity.”

“The Government must treat cyber resilience as economic infrastructure. The attacks on JLR and M&S show that a single breach can disrupt supply chains, stall productivity and dent UK prosperity. Targeted incentives for 24/7 threat detection and response would protect growth where it matters most.”

“Cyber security isn’t a technical cost, but a prosperity issue. Recent attacks show that when a major UK business goes down, whole supply chains feel it. This Budget should help firms harden their defences so the wider economy stays open for business.”

 

Chris Newton-Smith, CEO, IO (formerly ISMS.online)

 

 

1. Cybersecurity Investment & National Resilience

The lack of acknowledgement, and dedicated cybersecurity funding, in today’s Budget is likely to place more pressure on organisations to self-fund risk management and compliance initiatives during economically challenging conditions. This will have a severe impact on the security of our critical national infrastructure providers and resilience against rising threats, something that is essential given the recent high profile attacks we have seen lately.

2. AI Investment & Responsible Innovation

Today’s announcement of the government’s funding for AI development will significantly impact the UK’s competitiveness in global AI markets but also introduces clearer expectations for companies building or deploying AI. It will also determine how quickly UK businesses can build responsible, compliant AI solutions, particularly as standards such as ISO 42001 become critical for operationalising AI governance. However, despite this positive announcement it is still imperative that AI safety, governance, and risk management is considered, as if not, it is likely to create gaps that businesses will need to fill independently which may have any impact on the security of these systems.

3. Support for Tech Companies & Innovation / Tech talent

Today’s announcement of innovation grants, enterprise support schemes, and free apprenticeships, to support small and medium-sized businesses will directly influence tech sector growth and startups/scaleups’ ability to innovate effectively. It will also be crucial to tackling the UK’s longstanding tech and information security talent shortage. The investment in skills development will also go some way in helping UK businesses to meet growing compliance and resilience obligations under regimes such as NIS 2 and the Cyber Security and Resilience Bill.

 

Edward Lewis, CEO, CyXcel

 

 

“The tax hike in today’s budget, overall, extracts more from businesses while providing little room for companies to invest in their own resilience. The government is asking firms to shoulder a greater tax burden while also self-funding protection against threats that can destroy their business. Increased tax costs don’t just reduce investment capacity, they eliminate the financial cushion businesses need when ransomware and other cyber threats strike. This risk and cost are important to take into account, not least due to the government’s own intention to drive investment and adoption of AI, which is already fuelling cybersecurity risks.

“Take Jaguar Land Rover’s recent ransomware incident as an example. This cost £196m in direct response but required £3.5bn in emergency liquidity facilities to survive. That’s an 18:1 ratio – for every £1 spent responding to the attack, they needed £18 in emergency financing to prevent collapse. The company swung from £398m profit to £485m loss in a single quarter. Its revenues dropped £2.2bn in H1 overall. The Bank of England explicitly cited this incident as dragging down Q3 GDP growth. This wasn’t a cybersecurity failure – it was a liquidity and momentum crisis that affected national economic security. And sadly, for mid-sized manufacturers, and other businesses, without access to £3.5bn backstop facilities, the next major cybersecurity incident means extinction, not recovery.

“The government’s focus on “cutting national debt” while creating conditions where a single incident can wipe out more GDP than certain tax rises generate. The Budget should have given recognition that security infrastructure deserves at least parity with other strategic investments, not treatment as ordinary business expenditure.

“The Government invested £600m in intelligence agencies in the Spending Review which was appropriate and necessary. But, as mentioned, JLR alone needed £3.5bn in emergency facilities to survive one incident. Until policymakers understand that cyber incidents are liquidity crises, not IT problems, we’ll keep seeing GDP-affecting disasters that could have been manageable with proper financial architecture. Ultimately, this would hurt the UK’s AI ambitions, too.”

 

Leo Labeis, Founder and CEO, REGnosys

 

 

“Failing to introduce dedicated RegTech R&D tax credits is not just a significant missed opportunity, but also a strategic oversight. Innovate Finance and voices across the industry have been clear about what founders need.

“According to KPMG, RegTech is gaining significant investor interest, especially across EMEA, as regulatory compliance grows more complex.

“The UK has everything required to lead, but without targeted support, we hand a competitive advantage to jurisdictions moving faster to back next-generation compliance technology.”

 

Dominic Holmes, Principal, Value & Strategy EMEA, Cornerstone

 

 

“It would have been good to see the Youth Guarantee referenced in the Budget, particularly around how it will give the growing number of young people not in education, employment or training (NEETs) access to learning, apprenticeships and paid work placements. Helping young people survive and thrive in the world of AI is one of the defining challenges of our age. Supporting them to get to grips with this still-emerging technology, especially through the personalised support and coaching AI enables, is essential. It’s particularly important with reports of some entry-level roles being replaced by automation.

“Cornerstone’s data shows that more than half (55%) of employers don’t fully understand their existing skills gaps or integrate this insight into their talent strategies. At the same time, there is a clear divide in access to the very training young workers are likely to need: those in the lowest income brackets – typically early-career or entry-level employees – are the least likely to receive structured AI or skills training. Just 16% of lower-income workers say they often or always receive AI training, compared with 47% of the highest earners. And only a third (33%) of employees overall feel encouraged to use AI at work, despite 80% already doing so.

“The challenge the government is grappling with mirrors that faced by Chief People Officers in many of the world’s biggest organisations, some of which are successfully delivering growth while balancing the books. One of the things those successful organisations are doing is staying laser focused on building an AI-ready, skills-centred workforce, so it was encouraging to see some recognition of this in today’s Budget.”

 

David Woon, Head Of Net Zero Engineering, Ennovus Solutions

 

 

“The newly announced British Industrial Competitiveness Scheme (BICS) has pledged to offer energy price cuts for up to 7,000 manufacturing businesses from April 2027. This is in addition to the separate British Industry Supercharger scheme, which will increase the discount on electricity network charges from 60% to 90% for roughly 500 of the most energy-intensive businesses from April 2026.

“On the face of it, this may seem a positive step, aimed at driving cost savings and UK competition among high-growth industries. However, it does not consider the whole picture – particularly when it comes to climate change. In removing these charges, the industries that have the biggest impact on our carbon emissions are being given no incentive to adapt or move to renewable energy, in favour of boosting the economy. Furthermore, it is not made clear how these costs are intended to be covered – we have previously seen smaller businesses picking up the bill, so it would be interesting to understand if this could impact more of the non-eligible manufacturers going forward.

“In addition, the Treasury has revealed that it will bring in a “pay-per-mile” tax on electric vehicles from 2028, ahead of the ban on new petrol and diesel cars from 2030. This has been positioned to address the significant revenue shortfall from declining fuel duty and to create a fairer system for all drivers as the country transitions away from petrol and diesel cars.

“However, taxing EVs goes directly against the government’s goals to transition towards them. This critical tradeoff between short term relief and the long-term decarbonisation needed to achieve the UK’s net zero goals feels like a backwards step, which sends a worrying message about how we view sustainability. It is important that all decisions around energy and fuel are framed within climate change, to ensure that we are making decisions that consider the future and the next generation – not simply addressing immediate economic gaps.

“Furthermore, it is essential that sustainable measures and renewable energy are seen for the strong investments they are – able to provide better cost savings and stability as well as significant carbon reduction, that will inevitably benefit all.”

 

Declan Doyle CEO, Bidvest Noonan

 

 

“The Government’s mixed messages on electric vehicles are creating uncertainty that risks stalling commercial adoption. Although it’s good to see an extra £1.3bn for subsidies for new electric vehicles, a pay-per-mile charge risks disincentivising companies from making the switch to electric vehicles.

At Bidvest Noonan, a significant share of our vehicles is already electric, used for security patrols and for work across thousands of customer sites. We chose to electrify our fleet because it reduces emissions and aligns with our long-term sustainability goals, however continued progress depends on policies that give businesses confidence to invest.

Making our fleet fully electric by 2035 is one of our core sustainability objectives, and we have already replaced many diesel and petrol vehicles. We remain committed to that target, but this charge, alongside the vehicle tax introduced in April, will put many businesses off switching to electric vehicles. At a time when the country should be accelerating towards net zero, measures like this risk slowing momentum.”