Latest updates and stories from Bedfordshire Chamber of Commerce and its Members

The Chancellor’s Autumn Budget, delivered yesterday on 26 November 2025, offers a complex mix of policies: some welcome reliefs for business, targeted support for households, but also a broad raft of tax increases and fiscal tightening that leave many questions for firms in Bedfordshire and a continued absence of a long-term growth strategy.

The headline message for business is relief, not acceleration.

Whilst there are some welcome measures, they fall short of creating the conditions for stronger investment, higher productivity, and the confidence that Bedfordshire firms are telling us they need.

Holding the Line on Business Taxation

One of the most reassuring aspects of the Budget is what didn’t change. There were no major new taxes directly targeting firms.

Corporation tax will remain at 25% for the remainder of this Parliament, providing some stability after years of fluctuation. While this does not represent a tax cut, certainty can prove valuable.

Existing capital investment incentives remain in place, although only modestly broadened. Businesses had hoped for a more ambitious approach, but the extension of investment allowances, while conservative, at least avoids further complexity or reduction.

This stability will help with planning, even if it does not meaningfully shift the dial on investment.

Labour Market Measures: A Double-Edged Sword for Employers

National Living Wage Increase

The 4.1% rise in the National Living Wage to £12.71 per hour from April 2026 is significant.

This will boost incomes and may support recruitment in sectors struggling with vacancies. However, it will increase payroll costs for employers already managing rising input costs and margin pressures and will require careful workforce planning.

Salary-Sacrifice Pension Changes

A new measure announced, and one with considerable long-term implications, is the reform of salary-sacrificed pension contributions.

From April 2029 contributions to salary-sacrificed pension scheme above £2000 will no longer be exempt from National Insurance. Employer NICs will be charged at 15% on these contributions and Employee NICs will be charged at 8% on income below £50,270 and 2% on income above that threshold.

This is a significant departure from the current system, which allows unlimited NI savings on salary-sacrifice contributions. For employers this will increase employment costs, especially those offering  generous pension schemes or with large numbers of staff using salary sacrifice.

A Growing Tax Burden Elsewhere, and Why It Matters to Business

Although direct business taxes were largely unchanged, the Autumn Budget confirmed a broad programme of tax increases on individuals, savings, dividends, and property, alongside an extended freeze on income-tax thresholds.

This could put real pressure on many businesses and households

• The overall tax burden is set to rise by a further £26 billion by the end of this Parliament, according to forecasts by the Office for Budget Responsibility (OBR).
• Income-tax thresholds remain frozen until at least 2028, meaning more individuals will move into higher tax bands as wages rise.
• Taxes on savings, dividends, property income, pensions, and capital gains will increase.
• Certain reliefs, including forms of Business Property Relief and Agricultural Property Relief, will face restrictions.

This could mean that owner-managed firms may face higher personal tax liabilities, affecting how they extract profit and plan for investment. Higher-rate fiscal drag reduces disposable income, which could soften consumer spending power - especially for discretionary sectors. There may be lower investment appetite among SMEs, investors and entrepreneurs.

While businesses have avoided headline-grabbing corporation tax hikes or major new business taxes, the broader tightening represents a stealth increase that will be felt across the economy.

What’s Missing: A Clear Plan for Growth

Critically, the Budget lacks a blueprint to drive economic growth.

There were no major announcements on infrastructure investment, planning reform, skills or workforce development, export growth or innovation funding. For businesses facing rising costs, tighter tax conditions and subdued investment confidence, this lack of direction is a significant concern.

Without a long-term plan, the Budget helps to stabilise but not transform - and transformation is precisely what the UK economy needs.

What This Means for Bedfordshire

For businesses in Bedfordshire, the Autumn Budget 2025 creates a cautiously hopeful but ultimately uncertain landscape:

• Short-term breathing space: Firms may benefit from stable corporation tax, lower business rates for some retail/hospitality premises, and potentially stronger consumer spending in the short term due to wage increases.
• Longer-term headwinds: Higher labour and pension-related costs for employers. Fiscal drag, tax rises on savings, pensions and property, and a cost-of-living squeeze could reduce disposable incomes, with knock-on effects on consumer demand, confidence, and investment.
• Need for clarity and support: Without a clear “growth-first” strategy, businesses may remain hesitant to invest or expand. The government needs to clarify how it intends to support productivity, infrastructure, skills, and innovation.

A Budget that Delivers Relief, but Not a Strategy

The 2025 Autumn Budget delivers some welcome short-term reliefs: modest support for households, protection for businesses from dramatic tax rises, and certain targeted measures that may help high-street firms.

However, it falls short of delivering a long-term, growth-oriented strategy; especially one that addresses productivity, skills, investment, and infrastructure. These will be essential if regions like Bedfordshire are to flourish in a challenging economic climate.

While stability is welcome, businesses across the county and beyond still need a long-term strategy that supports investment, innovation, skills and competitiveness. Until that arrives, resilience, smart planning and strong local networks, which are the qualities our business community continues to show, will remain essential.

For more information on how we represent Bedfordshire businesses at a national level, or to become a Chamber member if you’re not yet one, contact our team on 01582 522448.