Uncertainty builds as Rachel Reeves sets the scene for the Autumn Budget, says Monahans, part of the Sumer Group

Business owners and taxpayers across the UK are facing growing uncertainty ahead of the Autumn Budget, following Chancellor Rachel Reeves’ recent comments, according to one of the South West’s leading independent firms of accountants and business advisers.

Monahans, part of the Sumer Group, have spoken out about growing concerns amongst taxpayers after the Chancellor refused to rule out tax increases in her address to the press on 4th November.

Reeves said that she may need to make “necessary choices” to meet the nation’s rising costs and acknowledged the challenges ahead but maintained that “the easy thing to do would be to cut investment”, a move she said would risk worsening the UK’s long-standing productivity problems.

While the speech was short on detail, it has left many business owners and individuals unsure about what to expect when the full Budget is announced later this month, according to Monahans.

Dominic Bourquin, Corporate and Personal Tax Partner, and Stephanie Hurst, a Corporate Tax Director at the firm, said: “Speeches like these often lead to greater uncertainty among our clients. Every year, speculation surrounding the Budget creates a flurry of concern about potential tax changes.

“While history tells us that many pre-Budget rumours don’t materialise, that doesn’t stop clients from worrying about what the future might bring.

“Our advice is always consistent, plan where possible, but avoid making major financial decisions based on unconfirmed speculation.

“For instance, it may be sensible for a client to complete the sale of an asset before the Budget to lock in current tax rates, but this is simply prudent planning, not a reaction to rumour.”

Monahans notes that this year’s pre-Budget speech, described by the Government as a “scene setter”, has taken the uncertainty a step further.

“This speech has confirmed one thing: change is coming,” said Dominic and Stephanie.

“But we still don’t know what those changes will look like, when they’ll take effect, or what impact they’ll have on taxpayers.

“Many of our clients, particularly business owners, have put growth and succession plans on hold as they wait for clarity.

“For them, Budget Day may at least bring the certainty they need to make informed decisions, even if the news is not entirely positive.”

The firm also highlighted that the long lead-up to this Budget, one of the most extended timelines in recent years, has created a challenging environment for businesses trying to plan ahead.

“Our clients are frustrated by the delay between the announcement of the Budget and the day itself,” they added.

“It gives the Chancellor more time to weigh options, but it gives businesses less confidence. Without knowing what’s coming, many are delaying investment in staff, technology and infrastructure, which inevitably holds back growth.”

On the Chancellor’s reference to making “necessary choices,” Monahans suggests the phrase may be intended to prepare the public for difficult decisions.

“It’s an interesting choice of words and potentially a double-edged sword,” explained Dominic and Stephanie.

“It could mean breaking manifesto pledges by raising one of the main taxes, such as Income Tax, National Insurance or VAT. Or it could signal a more subtle shift, an increase in the overall tax burden without changing headline rates, allowing the Chancellor to claim she’s kept her promises. Either way, we’re likely being softened up for measures that will raise revenue. Time will tell and there are only three weeks to wait.”