BUDGET: Industry Hopes and Warnings

Paresh Raja, CEO of Market Financial Solutions, said:

 “This is clearly going to be a loaded Budget. Rachel Reeves has issued some warning shots and, for the second year in a row, it looks like various tax hikes could steal the headlines on 26th November.

“For the property market, there has been a lot of conjecture as to what will be in the Chancellor’s favour red briefcase. For landlords, property investors, and the brokers working with them, there are some key policies to watch out for: an increase to income tax (though touted to be offset for many by a cut in national insurance, this will not be true for landlords); reforms to stamp duty, which have been speculated over wildly; extending capital gains tax to include primary and secondary homes; and potential changes to planning laws and the house-buying process.

“At this stage, adding to the speculation is pointless. Across the property market, from lenders and brokers to buyers and sellers, it is a question of adapting quickly to whatever the Chancellor announces. What’s more, though inertia has started to set in as the Budget approach, I would expect a flurry of activity afterwards. Indeed, amidst all the predictions about the tax blows that could land, the reality is typically less painful than the pre-speech doom-mongering.

“Ultimately, we have to be ready to take any changes in our stride and, if the Bank of England does come through with multiple cuts to the base rate in the coming year, then there is every reason to believe the market will remain buoyant. After all, even with a great deal of political and economic turbulence this year, house prices have continued to rise and buyer demand for UK property remains strong.”

Fiona Hodgson, Chief Executive of SNIPEF, said:

 “Although I am relieved to see confidence in our industry has remained relatively steady over the last quarter, the collapse in optimism for the wider UK economy is striking. 

 “It reflects a deeper malaise being felt across construction, especially in housebuilding, where repeated government promises of a renaissance have yet to materialise.”

 “When people are unsure about their disposable income, they delay spending on planned home upgrades and essential maintenance. That has a direct impact on our members, many of whom work in domestic settings and rely on customer confidence. The profession is doing its part to stay resilient, but the government must now do its part to support it.

 “We need a Budget that backs working people, builds business confidence and invests in the skilled workforce that will drive recovery. Without it, we risk pushing stability further out of reach.”

Construction Equipment Association reaction to Reeves’ Autumn Budget speech

Chancellor Rachel Reeves has warned that “necessary choices” will have to be made in the forthcoming Autumn Budget — a statement that has prompted concern across the construction equipment sector about the potential impact of tax increases on growth and investment.

  Any rise in personal or business taxation risks slowing construction activity at a time when confidence is already fragile. Housebuilding has yet to recover to pre-2022 levels, and any further pressure on affordability or borrowing could delay new projects and reduce demand for equipment across the supply chain.

For manufacturers and suppliers of construction machinery, higher taxes and ongoing cost pressures could make investment decisions more difficult. Many firms are already managing rising energy and materials costs, alongside continued post-Brexit barriers that affect logistics and trade. Additional fiscal tightening would further squeeze margins and limit the capacity to invest in research, product development, and workforce growth. A rise in taxation at this stage could risk stalling recovery across the construction supply chain.

  At the same time, the sector needs reassurance that public infrastructure projects will continue to be prioritised. Investment in transport, housing, schools, and hospitals underpins national productivity and provides vital demand for plant and equipment. Consistent, long-term commitments from government would give manufacturers and contractors the confidence to plan ahead and invest in cleaner, safer, and more efficient machinery.

  The Budget also presents an opportunity to reaffirm support for low-carbon technology. The construction equipment industry is already driving innovation in electric, hydrogen, and hybrid machinery, but sustained progress depends on stable energy policy and targeted incentives that encourage uptake rather than add cost.

  Skills remain another critical factor. If smaller contractors struggle or exit the market due to rising costs, the sector risks losing valuable expertise — from plant operators to engineers and technicians. Continued investment in skills development and training initiatives will be key to maintaining capacity and supporting the next generation of talent.

 CEA view
The construction equipment industry plays a central role in the UK’s economic recovery and in delivering national infrastructure. The Chancellor’s challenge will be to balance fiscal responsibility with the need to sustain growth and innovation. A Budget that supports investment, skills, and decarbonisation will strengthen the sector’s resilience and help maintain momentum in a challenging climate.

  The CEA will continue to represent its members’ interests, advocating for clear and consistent policies that enable the sector to invest with confidence and continue building a safer, more sustainable future for UK construction. Following the Budget announcement, the CEA will publish a detailed post-Budget analysis with the assistance of Andrew Angus, Professor at Cranfield University, School of Management.

  Viki Bell, Chief Executive of the Construction Equipment Association, said:
“Construction is a barometer for the wider economy, and stability in our sector means stability for the country. We understand the pressures facing the Chancellor, but growth and investment must remain at the heart of this Budget. Our members need the confidence to invest in skills, innovation, and cleaner technologies — not uncertainty that slows progress. A clear, long-term approach will give British manufacturing the platform it needs to thrive.”

Jonathan Samuels, CEO of Octane Capital, commented:
 “Confidence among developers has clearly weakened ahead of the Autumn Budget, and it’s easy to see why. Speculation around new taxes, higher capital gains charges, or potential land levies is creating a holding pattern across much of the sector. Developers thrive on certainty, but right now that’s in short supply.

While planning reform remains the key to unlocking housing delivery, access to flexible and efficient finance is equally important in maintaining momentum during periods of uncertainty. Specialist lenders play a vital role in bridging gaps, refinancing projects, and ensuring viable schemes don’t grind to a halt while developers wait for policy clarity.

If the Government truly wants to hit its housing targets, it must focus on measures that support delivery – whether that’s cutting bureaucracy, reducing transaction costs, or widening access to development funding. A well-targeted Stamp Duty reform could provide a near-term boost to buyer demand, helping to restore confidence throughout the housing pipeline.”

National Enterprise Network Warns of Business Collapse Risk if Business Rates Policy for Fractional Office Space Users is Changed

As the Autumn Statement approaches, National Enterprise Network is urgently calling upon the Chancellor and Prime Minister to maintain current business rates arrangements for micro and small businesses using serviced offices, warning that proposed changes could trigger widespread business failures and reverse post-pandemic recovery gains.

National Enterprise Network, representing business support organisations across the length and breadth of the country, has raised serious concerns about the ongoing uncertainty surrounding business rates for flexible workspaces. This uncertainty threatens to undermine a sector that has shown remarkable resilience, with the UK business population growing by 191,000 between 2024 and 2025, representing a 3.5% increase that highlights the recovery trajectory of small businesses post-COVID.

The current dispute centres on the Valuation Office Agency’s (VOA) approach to assessing serviced offices and coworking spaces. In late 2022, following pressure from local authorities led by the City of London, concerns arose about administrative burdens and potential misuse of Small Business Rates Relief. This led to an informal agreement requiring licences to demonstrate “paramount control” for individual office assessments, prompting widespread licence updates across the industry.

However, the issue has resurfaced in 2025, with the VOA now reviewing previously approved licences and some operators exploring short leases as workarounds. The assessment process for new site splits has stalled in several areas, with the VOA pursuing lengthy tribunal proceedings that could take years to resolve, leaving businesses in limbo.

The implications extend far beyond individual businesses. Small businesses currently employ 13.1 million people, representing 47% of total UK employment, whilst SMEs generate 51.2% of the UK’s total turnover of £2.8 trillion. Any disruption to business rates arrangements could jeopardise this economic contribution at a time when 94% of businesses are actively trading, with 84% fully operational.

“As we approach the Autumn Statement, we are deeply concerned about the ongoing uncertainty surrounding business rates arrangements for serviced offices and flexible workspaces. The potential for retrospective rate assessments threatens to undermine the recovery of our sector at a critical juncture. Many micro and small businesses that rely on these collaborative environments could be forced back to working from home or coffee shops, losing the invaluable benefits of professional coworking spaces. We urgently call upon the Chancellor and Prime Minister to provide clarity and stability, preventing what could be a devastating blow to an industry that has already weathered the storms of the pandemic and is now showing signs of recovery,” said Alex Till, Chair of National Enterprise Network.

The timing is particularly concerning as businesses prepare for year-end planning and goal-setting for 2026. The uncertainty threatens to disrupt the collaborative professional environments that have become essential for micro and small businesses, potentially forcing a regression to isolated working arrangements that lack the networking opportunities and professional infrastructure that coworking spaces provide.

National Enterprise Network warns that retrospective business rates claims could result in immediate business closures, with many small enterprises lacking the financial reserves to absorb unexpected backdated charges. This would not only impact individual businesses but could trigger a domino effect across the serviced office sector, undermining operators who are still recovering from pandemic-related challenges.

The organisation is calling for immediate government intervention to provide certainty and prevent what could become a significant setback for the UK’s small business ecosystem. With the flexible workspace sector playing an increasingly vital role in supporting entrepreneurship and business growth, maintaining stable and predictable business rates arrangements is essential for continued economic recovery.