The Chancellor’s Budget has “slam-dunked” the very people who drive the economy according to Cumbrian accountancy boss Paul Hornby.
Paul, Managing Director of JF Hornby & Co has accused the Chancellor of punishing success by taking deliberate aim at people who work hard, build businesses and put money aside for their future.
He says the changes to dividend tax, investment structures and property-related allowances, will quietly but decisively reduce the rewards of hard work.
“The extra 2% on dividends, will hit business owners and ordinary investors,” said Paul.
“Then there’s another 2% on property income and savings returns – penalising those who’ve done exactly what every government has told them to do: save, invest and plan ahead.”
He added that the introduction of a mansion tax piles yet more cost on households that have done well through hard work.
“You don’t wake up one day and find yourself in a £2 million house,” said Paul. “You do so because in all likelihood, you have worked hard, made sacrifices, taken risks and probably created jobs and opportunities for others along the way.
“It’s a sad day for entrepreneurialism. We’ve spent decades encouraging ambition and risk-taking. Now, it feels like success has been turned into something the Treasury wants to punish, not celebrate.”
Paul warned that the changes come on top of frozen tax thresholds that will quietly push people into higher bands without any real increase in earnings.
“This is a slow squeeze dressed up as reform,” he said. “People are being drained of value they’ve built over a lifetime, and it’s happening through the back door.”
He said confidence among SMEs is already taking a hit, with many reassessing recruitment, investment and growth plans.
“When you keep taking from the people who create jobs and prosperity, growth doesn’t just dip – it sinks. This Budget risks doing exactly that.”
Paul urged business owners and investors to get ahead of the changes, understand their position and seek proper advice.
JF Hornby & Co will publish a full, plain-English breakdown of the Budget in the coming days.
For tailored guidance, contact JF Hornby & Co on 01229 588 077, email jfh@jfhornby.com or visit jfhornby.co.uk.
