By Carmelo Garcia – Local Democracy Reporter
There are concerns among Gloucester businesses over the long-term impact the Chancellor’s latest plans for the UK economy will have amid fears over wage bill rises may impact recruitment or lead to price hikes.
That is the view of local businesses shared at Gloucester Chamber of Commerce’s Autumn Budget Download Event hosted by Fasthosts on December 5.
A Chamber of Commerce spokesperson said there was a “great deal of care and genuine concern in the room for working people”.
But they hope the coming year brings with it business, and consumer confidence and the decisions that the Government has made improve the economy.
“With businesses braced for the worst in the run-up, the dust has now settled and the full extent of what has been announced has now sunk in”, Luke Lutman, CEO Gloucester Chamber of Commerce said.
He said the main points presented at the event by Pi Accountancy were:
Freeze on Income Tax thresholds until 2031. With the Personal Allowance held at £12,570 and the basic rate limit remaining at £50,270
Additional tax rises will affect dividends, savings and property income from 2026/27, with landlord rates rising to 22 per cent (basic), 42 per cent (higher) and 47 per cent (additional)
Significant lifestyle and business changes, including the removal of homeworking tax relief from April 2026 and the introduction of a new pay-per-mile charge for electric vehicles from 2028.
High-value property owners will see new annual surcharges from 2028, beginning at £2,500 for homes over £2 million and rising to £7,500 for those above £5 million.
Further reforms include limits on salary-sacrifice pension contributions, adjusted ISA allowances for under-65s, and minimum wage increases set for 2026/27.
The government also announced expanded support for young people, including full funding of apprenticeship training for under-25s and an £820 million Youth Guarantee to help long-term unemployed 18–21-year-olds access work, education or apprenticeships.
“Thank you to Alex McIntyre MP for coming to our event and answering questions related to policy and politics. We appreciate the questions became very technical, but you rose to the challenge admirably.
“Most of the concerns raised by the local businesses attending this event centered around the long term effects caused by these changes as wage bills rise, potentially causing businesses to reduce their staff or hold off on hiring for the foreseeable future to make ends meet as well as potential price rises that they may have to implement.
“There was a great deal of care and genuine concern in the room for working people going forward; time will tell how this will turn out in the end and how businesses will fare.
“We hope that the coming year brings with it business, and consumer confidence and the decisions that the government has made to improve our economy.”
Gloucester MP Alex McIntyre said it was great to hear directly from city businesses.
“A big thanks to the Chamber of Commerce, Fasthosts and Pi Accountancy for asking me to be involved in this brilliant event,” he said.
“It was great to get an opportunity to hear directly from local businesses from a really wide range of sectors.
“I was grateful to be part of the conversation, for their openness and as always for the delicious coffee provided by local roastery Ethical Addictions.”