Commons Sense

House of Commons · Ministers' Questions

Business Costs: Impact of Autumn Budget

Tuesday 20 May 2025 · 3 questions

Summarised by AI from the official record, so it can contain mistakes.

Read the full transcript on Parliament.uk

At a glance

Answered 0 Partly answered 3 Not answered 0

Key points

  • The money from national insurance is being used to fund investment in the national health service.
  • According to PwC's global CEO survey, Britain is the second-best place in the world to invest.
  • In the Budget, the Government extended business rates relief at a cost of about 1.5 billion.

Topics (select to filter)

Questions & Answers

Q1 Graham Stuart Con Beverley and Holderness
Taxation Business & Trade
Context

The question follows an assessment by the Chancellor regarding policies in the autumn budget. A specific business, Johnson's of Hedon, a DIY store that has been operating for 56 years, is struggling due to increased employers' national insurance contributions.

Question

What assessment she has made of the potential impact of the autumn Budget 2024 on costs for businesses. Johnson’s of Hedon, a DIY store, has traded successfully for 56 years but its owner Mike Brooke says that the national insurance hike introduced by the Chancellor has finally made the business unviable. Was the cruel destruction of Johnson’s of Hedon and the jobs it provides deliberate or an accident?

Answer from The Chancellor of the Exchequer (Rachel Reeves)

The money from national insurance—which only came in last month—is being used to fund investment in the national health service. Since the general election we have delivered 3 million additional NHS appointments, which benefits constituents across East Yorkshire and throughout the country. The trade deal with the European Union was welcomed by the Confederation of British Industry, the Food & Drink Federation, the Institute of Directors, and others because it will add about £9 billion to the size of the UK economy.

Partly answered

Not addressed: Specific question regarding Johnson's of Hedon was not directly addressed.

How: Changed Subject

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Q2 Mel Stride Con Central Devon
Economy Business & Trade
Context

The shadow Chancellor had previously stated that the economy has turned a corner, but recent data suggests otherwise due to increased national insurance contributions.

Question

Only last week the right hon. Lady was trumpeting that the economy had turned a corner, but it is barely a month since her disastrous jobs tax started to bite. May I ask her precisely which business confidence survey she can point to which supports her assertion that everything is coming up roses?

Answer from The Chancellor of the Exchequer (Rachel Reeves)

According to PwC’s global CEO survey, Britain is the second-best place in the world in which to invest. Since the general election we have created 200,000 jobs and the UK is now the fastest-growing economy in the G7. We have secured three trade agreements backed by British businesses and unions; the Conservative party opposes every single one.

Partly answered

Not addressed: Specific survey was not provided, instead general economic claims were made.

How: General Statements

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Q3 Daisy Cooper Lib Dem St Albans
Business & Trade
Context

The autumn budget reduced business rates relief, affecting small independent businesses disproportionately compared to chains.

Question

In the Budget the Government reduced business rates relief which is hitting small businesses hard. Under current plans, in the next financial year small independents could see their rates go up by 80% and chains could see theirs go down by 40%. Will the Chancellor please promise that she will look at it personally to ensure that this unintended consequence does not come to pass and independent businesses do not close?

Answer from The Chancellor of the Exchequer (Rachel Reeves)

In the Budget, at a cost of about £1.5 billion, we were able to extend business rates relief which was due to end entirely under the previous plans. We are reforming the way in which business rates work so that there are permanently lower rates for hospitality and retail sectors, particularly on our high streets.

Partly answered

Not addressed: Specific promise from Chancellor was not made.

How: Changed Subject

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