Business leaders offered mixed reactions to the recent UK budget, delivered against a backdrop of ongoing economic challenges and calls for growth-boosting measures. While some welcomed specific policy elements, many expressed disappointment over the lack of bold initiatives to stimulate the economy.

Tom Athron, chief executive of Fortnum & Mason, described the budget as falling short of expectations. He criticized it for lacking ambition, saying it was neither a growth-driven plan nor one likely to pull the UK out of its current economic difficulties. “It’s not a budget for business. It’s not a budget for growth,” Athron said, emphasizing the absence of boldness.

Conversely, Greg Jackson, CEO of Octopus Energy, highlighted what he saw as coherent policymaking on energy costs and future sustainability. He noted efforts to balance short-term relief with long-term goals such as efficient electrification and a lower-cost energy system. Jackson called the government’s approach “sensible,” though he acknowledged uncertainty over the upcoming January energy price cap increase.

In the financial sector, Tiina Lee, outgoing head of Citigroup UK, expressed cautious optimism. She welcomed the government’s recognition of financial services’ role in supporting growth but expressed disappointment over the increase in the bank surcharge tax. However, she noted that the clear 15-month time limit on the surcharge provides banks and investors with greater certainty moving forward.

Whitbread CEO Dominic Paul praised the government’s decision to freeze business rates for two years, a long-standing industry request. He called the budget “very positive” and expressed support for planned minimum wage increases, which he described as broadly aligned with recommendations.

Ros Deegan, chief executive of Omass Therapeutics, highlighted the government’s focus on life sciences investment, noting the sector was “recognised” in the budget both for established companies and the start-up ecosystem. However, she voiced concerns about the UK’s ability to scale life sciences companies and retain associated jobs and returns domestically.

The housing industry received a mixed assessment from Andy Hill, CEO of Hill Group. He welcomed the introduction of the Your First Home scheme as a starting point but called for earlier implementation and increased support, particularly in London where developers face difficulties. Hill criticized the £500,000 price cap in outer London, suggesting it may not suffice for typical two-bedroom properties in pricier boroughs.

Steve Hare, CEO of Sage, welcomed the absence of significant changes to capital gains tax or other structural economic reforms. He said the government’s promise of a ten-year plan reviewing policies collectively was “really to be welcomed,” stressing the importance of providing small businesses with confidence to invest in technology, including artificial intelligence.

Overall, business leaders acknowledged some positive aspects of the budget but agreed it fell short of delivering the strong, ambitious measures needed to drive robust economic growth.