ACCA Cymru/Wales comment on the budget announced by Chancellor Rachel Reeves in the House of Commons.
Lloyd Powell, Head of ACCA Cymru/Wales
“While today’s announcements draw a line under weeks of speculation, businesses in Wales will be concerned at additional costs to businesses, given the cost pressures many were already facing. These include future NI contributions on salary-sacrificed pensions and through the increase in the national minimum wage. It remains to be seen whether businesses continue to hold back on investment in expectation of more uncertainty.
“On tax, we’re disappointed that the government has opted for further tweaks, including freezing thresholds, rather than bolder reform. This only adds to the complexity of the UK’s tax landscape and diverts from key principles of transparency and simplicity. Furthermore, drawing more taxpayers into the orbit of HMRC further overburdens an already-creaking agency.
“The Welsh economy will gain through the additional £505 million to be passed onto the Welsh Government through the Barnett formula, as well as through the two AI growth zones, support for the Welsh semiconductor industry and the small nuclear reactor project at Wylfa.”