Healey’s speech a ‘breathing-space Budget’ says FBC Manby Bowdler head

The head of a fast-growing law firm today described Chancellor John Healey’s speech as a ‘breathing-space Budget’.

Neil Lloyd, chief executive of FBC Manby Bowdler and the Adeptio Law Group, said the Chancellor had little room to manoeuvre ahead of today’s speech and his hands had been largely tied by economic factors.

But Neil said he welcomed the move to raise the business rates threshold from £12,000 to £18,000 which would mean some 75,000 small businesses, shops and hospitality venues avoiding the charge.

He also said the Chancellor deserved praise for avoiding the months of damaging speculation ahead of the Budget which had blighted the last two speeches.

“I am very pleased to see the move on business rates which is long overdue and will help many small and mainly retail businesses across our region,” said Neil.

“I think the Chancellor’s decision to reduce his economic headroom shows just how tight a corner he was in ahead of today’s speech and the limited wriggle room he had available.

“This was a speech very much designed to give him and the new prime minister some breathing space and he announced little which will significantly move the dial for business.

“I’m of course pleased to see further investment in training and skills and the £100m investment for local apprenticeship services to match young people with local firms is welcome.

“The move to protect families from immediate wholesale income-tax when they hand down their businesses to the next generation is also very welcome.

“These businesses make up the backbone of the British economy and their success must be supported particularly if the Chancellor is serious in his wider ambition to back and buy British firms and support innovation and entrepreneurship.”

Neil, who is also chair of the Training and Manufacturing Group, said moves to help firms with soaring energy costs were welcome but a drop in the ocean compared to the increases businesses had been forced to absorb over the past few years.

“Overall, business energy costs remain some 75 per cent higher than their pre-crisis levels in 2021, so any help in meeting these costs must be welcomed. But today’s measures will not go far in helping UK firms remain competitive on the world stage.

“Rising energy costs are creating issues across manufacturing and the help needs to be broader. This is the sector which will do most to drive growth but it cannot do it if it cannot afford to power up its machinery.

“I would have liked to see stronger, more targeted interventions to support skills development, whether through enhanced training incentives, clearer vocational pathways or more support for regional skills programmes. Without a long‑term plan to grow the UK’s skills base, businesses will continue to face constraints that no single Budget can fix.

“And for all the talk of growth in every postcode, the priority has to be on delivering.  Reducing regulatory friction, speeding up planning decisions and giving firms confidence to invest are the foundations of sustainable growth and it’s time some of the Government’s words around these issues were transformed into action.”

FBC Manby Bowdler has branches in Birmingham, Wolverhampton, Knowle, Shropshire and Worcestershire. It is the founding firm of the Adeptio Law Group, created following a £30m private-equity investment from Horizon Capital, and has enjoyed exceptional growth over the past two years.