Small business owners in the West Midlands are urging Chancellor John Healey to ease pressure on employers in his first UK Budget, expected in the week after 25 October 2026. They say employment costs, fuel prices and trading difficulties are making it harder to invest and grow.

Key Takeaways

  • Employers are seeking relief from National Insurance and fuel costs.
  • A clothing business also wants easier trade with European customers.
  • The government faces competing demands on spending and borrowing.

What businesses want from the UK Budget

Tom Adams, who runs Stonemasons of Worcester and employs 12 people, said rising costs had made it harder to expand and left less money available for reinvestment. He pointed to the rise in the employer National Insurance rate from 13.8% to 15% and the reduction in the threshold from £9,100 to £5,000.

Fuel supplier Emma Osborn, who runs Halso UK Fuels in Lichfield, said customers had become more cautious about spending. Joe Williams, who runs Worcester-based AJ's Removals, said diesel was a significant cost for his business and called for government support.

Deb Price, chief executive of clothing company British Boxers in Leek, said trading with European customers remained more complicated than before and that closer ties with Europe would make business easier.

Government faces spending and tax choices

Ministers have argued that higher employer National Insurance contributions help fund public services, while minimum wage increases support workers' pay. They have also pointed to business rates changes and efforts to reduce regulation.

Healey announced plans the previous week to cut paperwork, with ministers claiming the changes could save businesses up to £800 million. A Treasury spokesperson also cited a 20% reduction in business rates for pubs, social clubs and live music venues, and plans to cap corporation tax.

The Institute for Fiscal Studies has warned that the government could face a £35 billion challenge if it wants to maintain public spending plans, increase defence spending and stay within existing fiscal constraints. Fuel duty has been frozen since 2022, and a temporary 5p cut was extended earlier in 2026; whether the freeze will continue beyond the end of the year remains uncertain.

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