IoD press release  Four in five business leaders react negatively to Budget

In terms of the individual policies announced by the Chancellor, those viewed most negatively are:

• £2000 cap on salary sacrifice into workplace pensions (by 78% of respondents)
• Reducing the writing down allowance main rate in corporation tax (66%)
• Freezing tax thresholds on employer National Insurance contributions (66%)
• Increase in national living and minimum wages (58%)

The individual policies viewed most positively are:

• Funding to make under 25 apprenticeships free for SMEs (54%)
• Providing a new three-year stamp duty holiday for firms that list in the UK (37%)

Anna Leach, Chief Economist at the Institute of Directors, said:

“This Budget has landed badly with business leaders. Four fifths rate it negatively, citing in particular the further increases in national insurance and the minimum wage, and an increase in the effective rate of corporation tax. Firms are telling us that this will hit hiring and investment intentions further, with many also planning to review their pension arrangements. Although the additional funding for SME apprenticeships for the under 25s and the stamp duty holiday for listings were both welcomed, they were not judged to be of sufficient scale to offset the negative impacts from elsewhere. After a prolonged and messy Budget period, businesses remain unconvinced by the government’s growth strategy.”

Full results

507 responses from across the UK, which went live immediately after the Budget announcement, and remained in the field for 24 hours.

How do you feel about today’s Budget and its associated announcements?

To what extent do you think the following announcements in the Chancellor’s Autumn Budget Statement will have a positive or negative impact on your organisation?