West businesses ‘feel the squeeze again’ as Budget dampens any enthusiasm

THE Budget will "dampen business sentiment, job creation and investment" in the West of England, local business leaders have warned.

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Rachel Reeves' statement to Parliament received a cool response from the South West business community.

Among the announcements, Reeves confirmed the minimum wage would be increased by 4.1% from April, with 6%-8.5% rise for younger workers. And she also announced a £2,000 cap on salary sacrifice schemes that pay into a pension.

"This is a tax-raising budget from a Chancellor under pressure," said Phil Smith, managing director of South West chamber Business West. "Businesses will once again feel squeezed with rising costs across a range of areas."

Mr Smith said many West Country businesses were "still coming to terms" with the 2024 Budget announcement, which included a hike in employers' national insurance contributions.

"Ultimately, this Budget is unlikely to shift the dial when it comes to business confidence, or economic growth," he said.