Business leaders have expressed their concerns about the 'extremely disappointing' Budget and the impact it will have on Cumbrian businesses.

Chancellor of the Exchequer Rachel Reeves introduced a wide range of measures as she delivered her Budget to the House of Commons on Wednesday afternoon.

The announcements have not been welcomed by many local businesses who feel disappointed and concerned with the decisions taken by the government which they believe 'punishes' UK businesses.

Nicky Gordon, managing director of Genesis Homes, said: "Today is a really challenging day for UK business owners as the Budget only compounds the misery of what has been a difficult trading period stretching back to the outbreak of Covid-19.

"It is a deeply worrying time for private business and enterprise as businesses are being punished with increased costs through taxation, and businesses like ours will feel the additional effects of increases to stamp duty rates for second homeowners.

"This Budget is extremely disappointing and only causes more concern among UK businesses. We had all hoped for more stimulus-based Budget announcements after promises of positive change, but instead we are being punished."

Among the measures announced, the budget outlined that from April 2025 employer National Insurance contributions will rise by 1.2 per cent to 15 per cent whilst the threshold at which they start contributing will fall from £9,100 per year to £5,000.

It states that this will help to raise the money required to increase funding for, and to repair, public services.

Ms Reeves went on to say that the government will be increasing the Employment Allowance from £5,000 to £10,500 whilst also removing the £100,000 threshold, which means hundreds of thousands of businesses will pay no National Insurance contributions next year.

Becky Bowness, tax partner at Armstrong Watson, said: "The increase in national minimum and living wage coupled with the increase in Employers National Insurance contributions (and the reduced threshold when this is payable) will have a significant impact on businesses despite the increase in Employment Allowance for small businesses.

"Inevitably, this will have an impact on employees as businesses may not be able to pass this cost on in full to their customers, so we could see cuts in headcount and reduction in pay increases."