THE Chancellor has failed to deliver the immediate support businesses desperately need, instead adding to a tax burden already at its highest level in more than 70 years.
That’s the verdict of Paul Hornby, Managing Director of JF Hornby & Co, who said today’s Budget offered little encouragement to established SMEs already struggling with rising costs.
Ahead of the Budget, Paul had challenged Chancellor John Healey to deliver five measures to help businesses grow: greater certainty on tax, lower employment costs, better investment incentives, improved access to finance and less bureaucracy.
But he said the announcements would leave many business owners and taxpayers feeling increasingly frustrated.
He said: “It’s difficult not to feel disappointed by this Budget. We keep hearing about growth, investment and backing British business, but the reality for many of the businesses we work with is that the cost of doing business keeps going up.
“They are already dealing with higher employment costs, increased National Insurance contributions and pressure on their margins. What they needed was meaningful support now, not more promises about what might happen in the future.
“Instead, we’re seeing further tax increases that add to the burden on people who have worked hard, built businesses, saved and invested.”
Disappointed; Paul Hornby
The latest figures underline the scale of that burden. UK tax receipts reached 35.9 per cent of GDP in 2025/26, the highest level since 1950/51.
And the Institute for Fiscal Studies has highlighted forecasts showing the tax burden reaching 37.7 per cent of GDP by 2027/28, which would be the highest level on record.
The Budget included a further two percentage point increase in tax on savings and property income from April 2027, on top of increases previously announced.
Paul said: “We’re now in a position where the tax burden is approaching record levels, yet the answer seems to be to keep asking more from people who are already contributing.
“People who have worked hard, taken risks and put money aside for their future are once again being asked to pay more. At some point, the Government has to recognise the message that sends.”
The Chancellor also announced a new Founders’ Relief, offering qualifying entrepreneurs a reduced Capital Gains Tax rate when selling their businesses.
But Paul questioned whether the incentive would make any meaningful difference to the challenges facing existing businesses, or persuade entrepreneurs who have already moved overseas to return.
He said: “Founders’ Relief might make for a good headline, but we don’t yet know the full detail of how it will work or who will genuinely benefit.
“And if the intention is to encourage successful entrepreneurs to remain in Britain, the Government needs to recognise that some have already left.
“More importantly, what does it do for the established businesses employing people, paying their taxes and supporting local economies today? Very little to address the immediate pressures they’re facing.”
Employers also face further pressure on wage bills, with the National Living Wage set to rise by 3.9 per cent to £13.21 an hour from April 2027, while the 15 per cent employer National Insurance rate remains in place.
Although the Budget included measures intended to improve access to finance, encourage investment and reduce bureaucracy, Paul said they did little to change the immediate outlook for many SMEs.
He added: “Nobody disputes that people should be properly rewarded for their work. But the Government cannot keep making it more expensive to employ people and then wonder why businesses are reluctant to recruit.
“Announcing new schemes in Westminster is one thing. Making a genuine difference to an established SME in Cumbria is quite another.
“Businesses aren’t asking for handouts. They want some breathing space, certainty and an environment where hard work, investment and ambition are rewarded.
“The Chancellor says growth is the priority. Well, businesses create that growth. And right now, too many of them will be looking at this Budget and wondering what, if anything, has actually improved for them.”
