The UK Budget has prompted calls for clearer long-term direction as senior advisers at MHA warned that many of the measures announced may do little to ease short-term pressures on businesses or households. While the Chancellor focused on stability and investment, advisers said clarity on tax and growth strategy is now essential.
Professor Joe Nellis, economic adviser at MHA, described the Budget as “bullish”, built around financial stability and reassurance for the markets. He welcomed steps such as lifting the two-child benefit cap and the future reduction in energy bills, yet he questioned whether the measures help families and employers immediately. “The freeze on income tax and National Insurance thresholds until 2028 will drag more workers into higher rates,” he said, adding that the uncertainty between the Treasury and the OBR over debt forecasts underlines the fragile outlook.
James Kipping, head of private client tax, said the Budget “held few surprises” after weeks of leaks. He believes the decision to avoid a straightforward income tax increase has resulted in “a patchwork of tax rises” that will fall heavily on pensioners and Middle England. He added that the gap between taxation of earned and unearned income remains an issue and called for a long-term plan to merge Income Tax and NICs to simplify the system. “It might please backbenchers in the short term, but the complexity it creates will not help confidence,” he said.
Tax partner Rachel Nutt warned that entrepreneurs, investors and scale-up businesses now need clarity more than ever. She said the recent run of rumours and last-minute revisions has created “inertia, not growth”, and argued that higher capital gains tax for entrepreneurs and broader changes to inheritance tax risk damaging the UK’s competitiveness. “Business owners need a secure, competitive tax framework. Without clarity on long-term strategy, they cannot plan investment with confidence,” she said.
Together, the trio say the Budget provides stability on paper but lacks decisive measures that boost business confidence today. Although tax changes support the Chancellor’s fiscal objectives, the combination of frozen thresholds, increased taxes on dividends and growing complexity may weigh on investment decisions.
Across the region, businesses will now look for reassurance that future fiscal policy will be consistent and that consultations on tax reform will lead to a clearer, more predictable framework. As Nutt noted, stability is the foundation of growth — and the focus must shift from short-term adjustment to a lasting growth plan.
