UK (Parliament Politics Magazine) – Scottish Chambers urge Chancellor Rachel Reeves to restore UK business confidence in Autumn amid soaring costs and stalled investment.
As reported by The Independent, Scotland’s business network calls on Rachel Reeves to restore confidence in the upcoming Budget.
How are Scottish businesses pressuring Rachel Reeves ahead of the Budget?
The Scottish Chambers of Commerce has pressed Rachel Reeves to make next week’s Budget a “turning point” for UK businesses by boosting confidence.
In a letter, the chambers warn that businesses face a storm of rising costs and uncertain policies.
According to SCC, most industries are seeing falling business confidence, paused investment plans, and rising recruitment costs.
Liz Cameron, director and chief executive of SCC, said,
“Firms across Scotland are ready to invest and grow, but a complex and costly policy environment is holding them back.”
She stated,
“We hear all too often that firms want to invest in their premises and people, but that the spiralling cost burden has seen investment intentions shelved. This Chancellor needs to make this Budget a turning point for businesses.”
Ms Cameron added,
“The measures we’ve outlined will unlock investment, drive innovation, and create jobs in every region of the UK. Bold, evidence-led decisions today will secure growth and prosperity for decades to come.”
Dr Cameron said,
“The message from Scotland’s business community is clear: we’re ready to invest, innovate, and create jobs. Now we need a Budget that matches our ambition, and takes the necessary steps to restore business confidence.”
She continued,
“With the Scottish Budget due in January, we urge both governments to work together to deliver a settlement that unlocks the full potential of Scotland’s businesses.”
The business group called on the chancellor to take steps, including boosting tax competitiveness, securing energy funding, and focusing on infrastructure and skills for economic growth.
The SCC urged Ms Reeves to reverse the employer NI hike and reform the energy profits levy to support companies.
What did Kate Forbes say about Rachel Reeves’s budget plans?
Deputy First Minister Kate Forbes stated,
“I agree that it is vital that the Chancellor takes action to support industry, create jobs and encourage growth in the UK Budget. That is why we are calling on the UK Government to reverse the damaging decision to increase employers’ national insurance contributions which acts as a tax on jobs.”
She added,
“They must also listen carefully to the concerns being expressed by energy industry bodies and businesses around the devastating impacts of the reserved energy profits levy. The levy was always supposed to be a temporary measure and we must see the earliest possible end date, or complete reform, as it is affecting investment and jobs across Scotland’s energy sector.”
How did the UK government describe the Chancellor’s Budget plans?
The UK 2025 Budget is scheduled for November 26, with Scotland’s Budget set to follow in January.
A UK Government spokesperson added,
“The Chancellor has set out the context for the Budget, recognising global and long-term economic challenges. It will continue to build the strong foundations to secure Britain’s future.”
What did the latest data say about UK consumer confidence drops ahead of the Budget?
New data shows a drop in consumer confidence, largely driven by speculation over the chancellor’s upcoming Budget.
The British Retail Consortium linked falling consumer confidence to government signals of possible income tax hikes, noting the impact on spending ahead of Christmas.
BRC head Helen Dickinson warned that months of prolonged uncertainty have heightened public concern about personal finances and economic stability.
She called on the chancellor to take urgent action, saying it was essential to curb rising costs and control prices.
The data from BRC and Opinium show consumer economic expectations have fallen to −44, down from −35 in October, highlighting rising financial concerns.
Which taxes are expected to rise in the Autumn Budget?
The UK Autumn Budget 2025 is expected to freeze income tax and National Insurance thresholds. This move could push more income into higher tax brackets, effectively a “hidden” tax rise without directly increasing rates.
The Budget may tighten Capital Gains, Inheritance, and pension/ISA tax reliefs, targeting high earners and closing loopholes.
