The Devon Chamber of Commerce responded to today’s Autumn Budget, accepting that tax rises are required to move the nation forward but that more help is needed for the region’s hospitality industry.
It says several initiatives aimed at sheltering small businesses from the impact of tax rises – including increasing the employment allowance and lower business rates – are to be welcomed.
But the impact of a rise in the minimum wage and the increase in National Insurance Contributions will undoubtedly have an impact on an already struggling hospitality sector – which has long called for a VAT exemption.
Stuart Elford, CEO of Devon Chamber of Commerce, said: “The government’s planned reductions in business rates for retail, hospitality, and leisure businesses from 2026-27, alongside the 40% interim relief, provide a promising foundation for economic stability.
“This relief will support local businesses across Devon as they continue to navigate high operational costs, and it points towards a sustainable future for our high streets and leisure spaces.”
The Chamber also welcomes the increased Employment Allowance to £10,500, which will deliver essential National Insurance relief for smaller businesses, allowing them to focus on growth and resilience.
The announced £2.9 billion increase in military spending is viewed as a positive for the South West, which has a strong military presence. The additional funding, coupled with the commitment to commemorate the Second World War, reflects the government’s recognition of the role the region’s defence sector plays in national security and local employment.
“This increase in defence spending is excellent news for Devon and the wider South West, where the military presence is integral to our community and economy. It demonstrates the government’s commitment to supporting both our national security and the jobs and industries tied to it here in Devon,” Mr Elford noted.
Despite welcoming these measures, the Chamber reiterates its concerns for the South West’s hospitality sector, which faces mounting pressures from wage increases and operational costs.
While pleased with the overall relief package, the Chamber urges the government to consider a targeted VAT reduction for hospitality, which could provide a critical buffer for this essential sector.
Richard Marsh, Deputy CEO of Devon Chamber and CEO of Exeter Chamber, said: “The hospitality industry is a cornerstone of our regional economy and needs tailored support to manage rising costs.
“We call on the government to provide additional assistance that will allow hospitality businesses to continue contributing to the vibrancy of Devon’s economy.”
As the voice for local businesses, the Chamber will continue to work with government representatives, local councils, and businesses to ensure these measures provide meaningful support and to advocate for further aid where it is needed most.
British Chambers of Commerce reaction
Reacting to the Chancellor’s Autumn Budget, Shevaun Haviland, Director General of the British Chambers of Commerce, said: “This is a tough budget for business to swallow but the Chancellor has looked to ease the pain by holding out a promise of better days ahead.
“While some protection for smaller firms is welcome, the increase in employer National Insurance Contributions will place a further cost burden on business. This, coupled with a 6.7% increase in the National Living Wage, means many firms will find it more challenging to invest and recruit in the short-term.
“But the Chancellor has looked to off-set the upfront hit on firms by outlining a longer-term framework to provide stability for the economy.
“Plans to raise infrastructure spending, sector-specific business rates relief and additional support for small business will take some of the sting out of the tax rises. And it is encouraging to see full expensing and the annual investment allowance made permanent alongside R&D relief being retained.
“The Chancellor has also listened to our request to retain first year allowances for investments in the North Sea to help provide a just transition to Net Zero.
“Much now rests on the Government’s next steps, with the future benefits outlined by the Chancellor by no means guaranteed. A lot will be riding on the success of the Industrial and Trade strategies, and the effectiveness of devolution and public investment in infrastructure to reinvigorate regional supply chains.
“To build business confidence, it’s crucial that we now see decisive and inclusive action at pace from the Government to unlock the investment the economy sorely needs.”
