Business Editor Mike Hughes took a snapshot of Budget reaction from businesses across the North East

 

NECC

Rachel Anderson, assistant director of policy at the North East Chamber of Commerce, said: “In a number of crucial areas for North East business and employers the government has listened to our collective calls for a stronger, fairer region, including on skills, infrastructure and the national framework for investment.

“The employers’ National Insurance rise will be difficult for businesses, especially against the backdrop of increases in national minimum wage. We do however welcome the Chancellor’s increase in employment allowance, which will help many of our smaller businesses.

“There is positive news for investment in the electric vehicle and the automotive sector in our region, and for Crown Works Studios in Sunderland, which is expected to create over 8,000 jobs in the region.”

WOMBLE BOND DICKINSON

Gearalt Fahy, employment law specialist at Womble Bond Dickinson, which has offices in Newcastle and on Teesside said: “Starting April 6, 2025, businesses will face a double whammy: the employer’s NICs rate will rise from 13.8% to 15%, and the threshold for tax liability will be lowered. Coupled with a significant 6.7% hike in the national living wage (over 16% for those under 21) on the same date—following an even larger increase on April 6, 2024—this will hit hard.”

Partner Richard Cockburn added: “The Chancellor has confirmed £2bn of funding for 11 projects going through Hydrogen Allocation Round 1. However, there was no news about the relevant revenue support contracts being signed. The revenue support would be available to projects after they have started producing green hydrogen.”

CLIVE OWEN

David Baggaley, Tax Partner at Clive Owen LLP, said: “The decision to subject inherited pension pots to inheritance tax from 2027 in addition to the restriction of Business Relief and Agricultural Property Relief could be a cause for concern for many individuals.

“Next year’s increases in the National Minimum Wage and National Living Wage will be welcome news to workers but rises to employer National Insurance contributions will substantially raise payroll costs, necessitating careful financial planning for businesses.”

KROMEK

Dr Arnab Basu, CEO at Kromek Group plc based at Sedgefield, County Durham, said: “It is encouraging to hear the Chancellor committing to invest in science and technology based businesses, however it’s disappointing that the government has not taken the opportunity to correct the punitive changes to R&D tax credit system brought in the last year. We hope that adjustments to CGT do not deter investment and affect the flow of capital into financial markets.”

WEARDALE LITHIUM

Stewart Dickson, chief executive of Weardale Lithium, based in Weadale, County Durham, said: “The government’s acknowledgment, as part of the new Industrial Strategy, of the vital role critical minerals have in creating a sustainable battery manufacturing sector in the UK is welcome, but also highlights the need to invest in domestic production.”

POPULUS

Sim Hall, MD of Darlington-headquartered Populus Select, a recruitment and research consultancy specialising in science, advanced manufacturing and green technology sectors, said: “The government’s commitment to a modern Industrial Strategy is a promising step forward. By focusing on growth-driving sectors such as advanced manufacturing, clean energy, and life sciences, the UK can set the stage for being a world leader in new technology and job creation. “

FSB

Policy Chair of the Federation of Small Businesses (FSB), Tina McKenzie, said: “Increasing the employment allowance for small businesses by a record amount is a very welcome move and we’re pleased the Chancellor has heard us loud and clear. More than doubling it will shield the smallest employers from the jobs tax, therefore is a pro-jobs prioritisation in a tough Budget.”

RMT

Anthony Andreasen, Tax Director at Gosforth-based RMT Accountants & Business Advisors, says: “The changes to the Inheritance Tax regime, and particularly the inclusion of inherited pensions and changes to business and agricultural property reliefs, are hugely significant and will require anyone who expects to be impacted by them to be reviewing their personal tax situations as soon as possible.”

WKE

Ian Jones, CEO of Middlesbrough-based WKE, said: “As an alternative fuels manufacturer, we’re disappointed by the government’s lack of targeted support for our sector in this Budget.

“This Budget needed to address immediate energy security, not just far-flung efforts to tackle long-term energy challenges.”