REACTION TO LABOUR’S BUDGET MORE POLARISED THAN FOR CONSERVATIVES’ LAST BUDGET: AIRMIC SURVEY

The reaction to the last week’s Autumn Budget delivered by Chancellor Rachel Reeves has been more polarised than to the last Budget of the Conservative government – 8% of respondents in this week’s Airmic Big Question said they were “very positive” about the Labour government’s first Budget in 14 years, though 48% said they felt either “somewhat negative” or “very negative” about it.

In comparison, the reaction to the last Budget delivered by the Conservative Chancellor Jeremy Hunt in March this year was largely neutral – 38% of Airmic Big Question respondents then said they were “neutral” in reaction to that Budget.

Julia Graham, CEO, Airmic, said: “It was good to see more investment promised in innovation and technology in the Budget, but there was little to excite the engine room of the UK – small and medium size businesses. This important segment employs between one and 249 employees, contributes more than £2 trillion in turnover, and employs 44% of the British workforce. These organisations must be concerned, which in a post-Covid world, now face new pressures on their commercial, financial and mental health wellbeing. As a profession, we should be concerned too.”

The polarised reaction to the Budget among respondents in the Airmic Big Question survey stemmed in large part to the political row between the government and the opposition Conservatives on whether there was indeed a "£22 billion black hole" in public finances left behind by the latter.

Leigh-Anne Slade, Head of Media, Communications and Interest Groups, Airmic, said: “Our survey respondents who said they were ‘very positive’ about the Budget cited the years of underinvestment in public services, while those who were ‘very negative’ said Labour had broken its promise not to increase taxes for working people, while also being doubtful that measures in the Budget would help provide much needed boost to the stagnant economy.”

In the lead-up to the Labour government’s Budget, senior leaders in the insurance industry wrote to the Chancellor to call for a consultation about the creation of a captive insurance regime in the UK. No mention of such a consultation was made in the Budget.

Julia Graham, CEO, Airmic, said: “Airmic supports the creation of a separate regulatory regime for captives that could allow the UK to develop as an attractive domicile for captives. In joint communications with the Treasury, the Treasury has talked about possible relevant announcements at a set-piece event such as the Budget or Mansion House Dinner. The Treasury has agreed that Rachel Reeves will make her debut Mansion House speech as chancellor on November 14. We remain hopeful that this event might provide the government with the opportunity to announce a consultation on captives.”

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We will be sharing the results of the Airmic Big Question with the press weekly.

You can also find the results here.

Media contact: Leigh Anne Slade
Head of Media, Communications and Interest Groups, Airmic
Leigh-Anne.Slade@Airmic.com
07956 41 78 77