Budget 2025: Leaders' Hopes and Concerns
The upcoming budget has sparked anticipation and concern among business, union, and charity leaders in the East of England. The focus is on child benefit, wage increases, and the potential impact on public services and businesses.
Chancellor Rachel Reeves is set to unveil a new package of tax and spending measures on Wednesday, which may include the removal of the two-child benefit cap. This move has been met with both hope and caution.
Business and Tax Concerns
Nova Fairbank, CEO of the Norfolk Chambers of Commerce, warns of a 'hostile environment' for businesses due to increased business taxes and National Insurance contributions. She emphasizes the struggles businesses face and urges the government to adopt a long-term perspective in its policies.
The Treasury, however, counters that the government is 'pro-business' and highlights its efforts to cap corporation tax at 25%, the lowest rate in the G7. They also mention reforms in business rates, trade deals, and interest rate cuts benefiting businesses across Britain.
Public Sector Workers' Perspective
Tim Roberts, regional secretary of Unison, a public sector workers' union, advocates for investing in public services and the workers who deliver them. He suggests taxing wealth rather than work and proposes a 1% tax on assets over £5 million, which could raise £10 billion annually.
Roberts highlights the ongoing wage pressure in the public sector, where workers have received less-than-inflation pay rises. He emphasizes the need for stability and immediate change to address public service workers' frustration.
Community and Charity Concerns
Peter Dutch, from Colchester, founded the Anti Loo Roll Brigade charity after witnessing panic-buying during the coronavirus pandemic. He now worries about rising costs affecting essential goods and community services.
Dutch supports changes to the two-child benefit cap, arguing that children should not be punished for their circumstances. He also advocates for raising the tax allowance for low-income families and increasing mental health support in schools.
Tax Relief and Support
Fairbank calls for investment, deregulation, and a fairer tax system to empower businesses. She suggests tax relief on training to encourage apprenticeships and similar schemes, ensuring businesses can grow without excessive taxation.
The government's response emphasizes its pro-business stance and highlights various initiatives aimed at supporting businesses and delivering on the priorities of the British people.
As the budget unfolds, these diverse perspectives will shape the discussions and decisions that impact the lives of businesses, workers, and communities across the East of England.
