Rachel Reeves told to ‘get out of the way’ ahead of Autumn Budget
Chancellor Rachel Reeves has been told to “let businesses get on with it and get out of the way” ahead of delivering her second Autumn Budget in the coming months.
A group of 1,500 private business leaders surveyed by KPMG said the Chancellor should focus on promoting higher wages and lower costs for companies.
They added that higher taxes, such as the increases to employers’ National Insurance contributions and the National Minimum Wage introduced in last year’s Autumn Budget, are a “hindrance, not a help”.
The private business leaders also called for a reduction of “unnecessary regulations” and for the government to stop interfering with companies.
According to the polling data from KPMG, supplied exclusively to CityAM, the directors also want a reversal of the National Insurance hike introduced in April as well as the government’s net zero policies.
They also voiced their support for a reduction in VAT and more support for small businesses.
When asked which key business themes they would want Reeves to focus on in the Autumn Budget, 44 per cent of the 1,500 directors polled want the Chancellor to prioritise the adoption of new technology.
A further 35 per cent want Reeves to help businesses boost their profitability through the tax measures above.
And of the directors surveyed, 31 per cent want Reeves to focus on skills and talent while 27 per cent mentioned the government’s Industrial Strategy and “growth-focused investment”.
Last year’s Autumn Budget, Labour’s first since previously losing power in 2010, is still causing negativity among UK businesses, according to data released by the CBI in June.
Confidence on the rise despite Autumn Budget concerns
The figures have been collected through KPMG’s half-year Private Business Barometer which polled the same 1,500 private business leaders it did earlier this year to gauge if their confidence in the UK business environment has changed in recent months.
The first poll surveyed a range of sectors including professional services, finance, technology, industrial manufacturing and retail on several different topics.
Now the same businesses have been surveyed to see if events during the first half of 2025 – including supply chain disruption and continued economic uncertainty – have materially changed their views.
Earlier this year, 92 per cent were confident of their firm’s growth prospects in the next 12 months, with 59 per cent very confident.
And despite well documented challenges facing both the UK and global economies, the mid-year check-in saw a rise in both areas with 93.2 per cent of respondents saying they are confident and 62.1 per cent very confident when it comes to future growth.
Inflation and cost pressures were once again named as the top concerns in terms of barriers towards growth.
In an effort to achieve growth, business owners once again highlighted a desire to create new products and move into new markets. In particular, the importance of new products was highlighted by half of our respondents earlier in the year, but nearly three quarters of firms surveyed (72 per cent) flagged it this time round.
‘UK is seen as a stable environment for business’
Euan West, head of KPMG private enterprise in the UK and EMA, said: “It is pleasing to see that our mid pulse survey of private businesses has shown a cautious optimism when it comes to potential growth.
“2025, like 2024, has been filled with many challenges at home and abroad for firms of all shapes and sizes, this is why it is heartening to see continual but steady levels of confidence looking towards the future.
“The results of this survey show that the UK is seen as a stable environment for business, providing a strong launch pad for future growth.
“Despite global uncertainty, private businesses have continued to show a resilience and adaptability and are now very adept at managing through a wide variety of challenges.”
Who took part?
Of the 1,500 private business leaders surveyed, 49 per cent were aged between 25 and 34, with 26 per cent in the 35 to 44 bracket.
A further 12 per cent were aged between 45 to 54 while just seven per cent were between 55 and 64 and the age ranges 18 to 24 and 65+ had three per cent of the representation each.
The majority of the respondents (63 per cent) to the KPMG survey were men.
In terms of geography, the directors were almost evenly split across the country – ranging from seven per cent in Wales, Northern Ireland and the North East to 11 per cent in London.
A total of 74 per cent of the business leaders are in charge of privately owned companies not owned by themselves or their family. A further 26 per cent were owned or run by a family.
When categorised by annual revenue, 23 per cent had a turnover of between £1m and £10m, 17 per cent between £11m and £50m and 14 per cent up to £100,000.
A further 12 per cent had a revenue of between £101m to £500m.
Digging into the data
When asked about their own firm’s growth prospects this year, 62 per cent of those surveyed said they were very confident, with 31 per cent stating they were somewhat confident.
A further six per cent said they were not very confident and one per cent said they were not confident at all.
Asked what they thought was the most important area of investment for their firm, 67 per cent said technology while 36 per cent answered workforce and skills.
Asked about the potential negative impacts their businesses could face in the short term, 45 per cent said inflation was one of their biggest concerns.
A total of 32 per cent also answered further tax rises in the Autumn Budget in October and 31 per cent said rising employment costs.
Interest rates were flagged by 30 per cent of respondents while US tariffs and possible trade disruption was chosen by 22 per cent.
Only 14 per cent said geopolitical concerns such as the war in Ukraine was one of their biggest worries.
When asked what long-term factors would influence their planning for growth, investment or exiting their business, 51 per cent of polled leaders said the performance of the UK and/or global economies.
A further 42 per cent said the availability and cost of capital while 41 per cent said the performance of capital markets and equity valuations.
UK capital gains tax was cited by 30 per cent of respondents and retirement and succession planning was chosen by 25 per cent.
The UK’s foreign income and gains rules – which used to be called non-dom rules – was flagged by 24 per cent of business leaders and 21 per cent said the UK’s inheritance tax regime.
Why business confidence is all over the place
The latest KPMG business confidence survey are in line with recent research by Lloyds Bank, which showed business confidence to be edging up to historic highs.
However, most other surveys suggest that Lloyds and KPMG outcomes are an outlier. The Institute of Directors (IoD), the Confederation of British Industry (CBI), the British Chambers of Commerce (BCC) and the Institute of Chartered Accountants in England and Wales (ICAEW) all said confidence was in negative territory.
The IoD went as far as to warn confidence had hit a historic low, largely driven by the blowback of last Autumn’s giant tax raid, while others have noted varying degrees of negative responses or mild optimism.
Economists have clashed over its findings, with some pointing out that more negative surveys show how bosses are more likely to be critical of the wider UK economy’s prospects rather than their own.