The Autumn Budget included some welcome announcements for businesses, but questions remain over whether the measures go far enough to support growth and ease the pressures facing firms across the South West.
At Business West, representing businesses of all sizes, we know that the impact of government policy is felt directly by our members. Through our Quarterly Economic Survey (QES), we gather evidence on business confidence, costs, skills and trading conditions, helping ensure real firms' experiences inform the decisions that affect them.
Our Chambers of Commerce across Bristol, Bath, Gloucestershire and Wiltshire, alongside the Bristol Initiative, Initiative in B&NES and Futures West, connect businesses, support their growth and champion their interests.
Our latest Quarterly Economic Survey paints a challenging picture:
◀ Domestic and international sales are down 8%
◀ Almost 50% of businesses cite taxation and inflation as their leading concerns
◀ Just under 70% rank labour costs as their biggest pressure
The comments from businesses bring these figures to life. One service sector business told us:
Staff costs and employment costs have gone through the roof, and our clients are pushing our prices down to unsustainable levels. Margin is paper-thin or non-existent.
Another, in engineering, said: “We are fighting for every job we are asked to quote for. Other companies are in the same position.”
Against this backdrop, the announced measures to reduce business rates for many retail, hospitality and leisure businesses are welcome. Support for founders and additional funding through the National Wealth Fund and British Business Bank could also help businesses start up and expand. However, support needs to reach a wider range of firms if it is to make a meaningful difference to business confidence and investment.
The increased bank surcharge is another concern; any additional costs passed through to businesses could make finance more expensive or harder to access, particularly for smaller firms looking to invest.
The Budget offered limited additional support for businesses facing high energy bills, with the British Industrial Competitiveness Scheme focused on eligible energy-intensive industries.
For many other businesses, energy remains a significant overhead, adding to the pressure on their already tight margins. Our QES findings show how difficult it is for firms to absorb rising costs while remaining competitive.
Employment costs are equally pressing, and with almost 70% of surveyed businesses identifying labour costs as their leading pressure, there is a need for practical measures that help employers recruit and retain staff. The previously announced £100 million Local Apprenticeship Service fund is welcome, but more action is needed to tackle youth unemployment and help businesses bring people into work.
Through our Local Skills Improvement Plans (LSIPs), Business West is working to help employers navigate the skills and apprenticeship landscape. Our independent research has highlighted that many businesses are unsure which apprenticeship options are available, how to recruit an apprentice or what funding they could access.
Businesses can book a free meeting with our skills advisors to explore apprenticeship options, understand available funding and identify ways to develop the skills they need today while building their future workforce.
Making it easier for smaller businesses to access public contracts, alongside reducing selected tariffs, could open up new opportunities. However, these changes need to translate into tangible benefits for SMEs, with better access to procurement opportunities and increased exporting support.
International trade is an important part of the support Business West provides to our members and businesses. Through our trade documentation and ATA Carnet services, we help firms navigate the practical requirements of trading overseas. We see firsthand how important it is for businesses to have the right support when entering new markets and dealing with changing trade requirements.
Another big announcement was the reveal of the first wave of Mayoral Strategic Authority Business Rates Retention Zones, within which the West of England is included. With the government committing to a wider roadmap for 100% business rates retention by the end of the decade (and 20% going to mayors from 2027), regional leaders will have powerful new financial tools to drive growth.
We welcome the continued move towards greater devolution across the South West. Giving local leaders more control over funding and economic priorities creates opportunities to respond to the needs of their own communities and businesses.
However, business must have a meaningful role in these decisions from the outset. Local employers understand the barriers to growth in their areas, from skills shortages to infrastructure and investment. Their insight will be essential in ensuring that new powers and funding deliver lasting economic benefits. This is one of the reasons why Business West has joined forces with Dorset Chamber and Somerset Chamber of Commerce to establish the Wessex Chamber Alliance. This new partnership of three accredited Chambers will bring together the collective voice of businesses across the region to help ensure their priorities are represented as devolution plans develop.
The Budget contains measures that could support investment and create opportunities, particularly in areas such as AI and business finance, but our latest survey findings show that many firms are still dealing with weak demand and rising costs.
One retail and wholesale business told us: “Our client base is struggling, orders are smaller and more frequent, we want to grow but don’t feel it’s the right time.”
This is why business representation matters. Through our membership, research and engagement with businesses across the region, Business West works to understand the challenges firms face and ensure their experiences inform our policy work.
The British Chambers of Commerce's (BCC) response to the Budget reflects many of the issues our own research continues to highlight. Our Policy team, working closely with the BCC, ensures that this evidence contributes to a wider business voice, helping bring the realities of running a business directly into national policy discussions.
There is no single solution to the pressures facing businesses and what matters now is that the Budget's commitments lead to practical improvements, with further action where support falls short.
Business West will continue to represent the interests of businesses across the South West, working closely with the BCC to make sure their concerns are heard and their priorities remain part of the conversation as government policy develops.
This was a Budget delivered against a backdrop of significant fiscal constraints, but it’s good to see support for businesses through measures on energy costs and business rates relief.
Douglas Ure
28 October, 2026
Business West
Three of the region’s leading accredited Chambers of Commerce have come together to launch the Wessex Chamber Alliance, a new strategic partnership designed to provide a strong, coordinated and representative voice for business across the Wessex region.
Fiona Parsons
26 October, 2026
Business West
