26 Mar 2025
Business groups, including the Federation of Small Businesses (FSB), the British Chambers of Commerce (BCC) and the Confederation of British Industry (CBI) have reacted to Chancellor Rachel Reeves' 2025 Spring Statement speech.
Tina McKenzie, Policy Chair at the FSB, commented: '[The] growth figures are a stark reminder of the urgent need to get the economy moving. The whole of government must now step up and produce credible, pro-small business plans to achieve that.
'Every government department bears responsibility for growth and every cabinet minister must come forward at the upcoming spending review with proper plans to back small business growth and therefore growing the economy as a whole.'
Meanwhile, the BCC said that the Statement 'presents a challenging Spring landscape as businesses struggle to bloom'. Shevaun Haviland, Director General of the BCC, stated: 'The government must focus on reducing the cost pressures for businesses, boosting investment and exports.
'Firms are realistic, but they are also hurting. Within days they will be faced with higher National Insurance (NI) contributions and a rise in the National Living Wage (NLW). Our research shows 82% of businesses will be impacted by the NI hike – with firms forced to raise prices, postpone investment and cut back on recruitment. That's why we need a wider tax roadmap for business.'
Rain Newton-Smith, Director General of the CBI, said: 'Weaker growth this year is a serious setback but not a surprise given the burden businesses are shouldering after the Budget.
'The Chancellor has kept her promise to business, made at our conference, not to raise the burden further and focus on the efficient delivery of public services.
'It is the right approach that the government asks of the public sector the same as it has been expecting of business since the Budget - to absorb costs through agility, modernisation and innovation.'