Today’s Budget was not as bad as everyone feared; at least it did not deliver the same shocks to businesses and employers as last year’s, which led to difficult decisions over the past six months. However, it lacked ambition or a real vision for what the country could achieve. It also kicked the tax burden down the road with high spending now to be clawed back later, which was one of the circumstances leading up to the crash of 2008.
It was disappointing to hear very little on helping to reduce historically high levels of unemployment or indeed any recognition of long term ill health and disability due to the pandemic being one of the main drivers of millions of people being unable to work full time, or out of the workplace altogether. There was no detail on how the extra employees needed to deliver health services and reduce backlogs would be funded. There was no planned investment in public health. Social care was not mentioned once.
Repeated references to supporting “working people” or “working families” were concerning, particularly as the Budget also introduced punitive measures around work assessments and Motability. Face to face assessments are not suitable for the most vulnerable and disabled and, in some cases, risk spreading illness unnecessarily which will make people even more sick.
The announcement of funding for SMEs for under 25s Apprenticeships is very welcome and a good start however this should not be bound by age. One of the best things about Apprenticeships is the way that they support and encourage lifelong learning and skills development. Apprenticeships help people to remain in employment, even when their industry changes or they are approaching retirement, because they have learnt new skills. They enable people to keep up to date with emerging technologies in their existing career paths. They also provide access to new careers and even qualifications for people who have not had those opportunities available to them previously.
Freezing income tax thresholds is a regressive policy. It was perhaps understandable as a short term measure when the country emerged from Covid lockdowns. However, it is a stealth tax which reduces people’s disposable income, meaning they spend less in the economy and this is likely to impact on sectors like culture and the arts, hospitality and leisure, to name a few, which are already struggling in a difficult economic climate.
The rises in National Minimum Wage (NMW) and Real Living Wage (RLW) will increase employment costs to businesses. However, to place this in some context, we carry out pay reviews for clients and our research found that salary increases in the past year were averaging around 5%. This is above Bank of England interest rates, meaning many employers were raising salaries at similar percentages to the NMW and RLW proposed rises in any case. The lowest paid workers, including young workers, are disproportionately harder hit by the freeze in income tax thresholds therefore significant rises in NMW and RLW will help to slightly offset this. I have always argued that having a different rate depending on age is unfair, but at least the percentage rise for the youngest workers is greater.
It was disappointing that there was nothing on Justice, where the courts remain backlogged (we are hearing of Employment Tribunals being listed for 2029) and there are issues of wellbeing and working hours within the legal profession, not helped by ongoing delays in the system and issues with Legal Aid. This has implications for Access to Justice, a cornerstone of a civilised society.
Also disappointing was that there was nothing on funding for sports or the arts and culture sectors, who are employers and provide all sorts of personal and social development opportunities across society. These areas are also important in a civilised society providing much needed respite from the daily grind as well as developing skills and talents, self-esteem, and confidence.
The one overwhelmingly positive announcement was removing the appalling two child benefit cap. I have supported employees living in poverty concerned that they could not provide for their children. I have sadly seen firsthand as a school governor and other voluntary work within the education sector the devastating impacts of child poverty. Reports in the last few years have shown around 2 million children went more than 24 hours without eating a single mouthful of food. This has profound effects on a young person’s health, wellbeing, and development, placing their developing bodies under unnecessary additional pressure whilst trying to learn and absorb information. Children are the future in any society, and their life chances should not be held back.
26th November, 2025