Chambers East reacts to Autumn Budget 2026

While the East will see some benefit from this Budget, it is once again let down by a lack of major investment. Over 270,000 businesses across the region provide 3.3m jobs and are set to add £235bn in GVA to the UK economy by 2029. Yet still we receive almost £1,000 per capita less in public investment than the UK average each year – something this Budget does little to address. 

The tourism, retail, hospitality and leisure sectors will benefit from a national increase to the Small Business Rate Relief threshold. Resulting in significant cuts and/or complete removal of business rates for 70,000 more businesses, this will provide much needed relief for the region’s high streets. 

A £5bn funding commitment for the defence sector also poses a unique opportunity for the East of England, the UK’s third-largest space sector region. £424m in UKRI funding to the Norwich Research Park and a £105m investment in the Oxford-Cambridge Growth Corridor via East West Rail is welcome recognition of the region’s potential as a world-leader in science and innovation.  

It was disappointing, however, to see the Chancellor miss the opportunity to extend East West Rail further east – cutting off Norfolk, Suffolk and Essex from vital growth and transport infrastructure. Hopefully, the updated Infrastructure Pipeline due later this year will reflect the transformative potential of the Eastern Section. 

A failure to tackle the rising energy bills businesses face is disheartening. 51% of businesses in the region continue to struggle with the cost of energy – a cost that will inevitably pass on to the consumer. The Chancellor cannot hope to support working people without supporting those who provide the work. 

A lack of clarity regarding fiscal devolution invites further uncertainty in our region. Until all authorities in the region come to a devolution agreement, the East will stay in the Government’s blind spot: more local powers over tax, grants and government funding will not apply in the East until at least 2028, putting a stark limiter on growth in every postcode. Norfolk, Suffolk, Essex, and Bedfordshire cannot remain stuck in devolution limbo. 

It was also disappointing to see the government dismiss calls from across the business community to cut employer NI contributions for under 25s. Our data shows 80% of the East’s businesses felt under pressure to raise prices due to rising labour costs last quarter, with 79% reporting difficulties in hiring. The Chancellor is clearly aware of the ongoing NEET crisis, but he must give employers the breathing space to tackle it. A 3.9% increase to the minimum wage does little to help those without a job. 

We would have liked to see a wider range of businesses benefitting from energy support and business rates reform, and more action to tackle the youth unemployment crisis. The East’s path towards full devolution must also be made clearer, to provide the certainty and investment our region deserves. These are areas both the Chambers East, alongside the British Chambers of Commerce, will be seeking more action on in the months and years ahead. 

Nova Fairbank, Chief Executive of Norfolk Chamber of Commerce, commented: 

“Norfolk’s £3.6 billion tourism sector will welcome the significant changes to the Small Business Rate Relief threshold and Alcohol Duty system. And the £424m UKRI investment in the Norwich Research Park is a testament to the county’s world-leading science and innovation clusters. 

But limited help on energy costs, business rates, and no movement on employer national insurance will be met with frustration. The chancellor cannot hope to support working people without supporting those who provide the work. 

And with fiscal devolution at the heart of the Government’s growth agenda, securing a mayoral devolution deal for Norfolk and Suffolk as soon as possible is absolutely vital. Our counties cannot afford to wait until 2028 for greater local powers to address transport, skills, and economic growth – businesses need action and certainty now.” 

John Dugmore, Chief Executive of Suffolk Chamber of Commerce, commented: 

“Suffolk Chamber of Commerce had wanted to see the Chancellor back business, cut costs and deliver growth. As with Budget 2025, the relative lack of new taxes will be welcomed by Suffolk’s business community, but Healey’s announcements this afternoon will do little to cut costs and alleviate the accumulated pressures being faced by many of Suffolk’s SMEs. 

“There are positives from Healey’s statement. For high street businesses, including those in retail, hospitality and leisure, further business rates reductions will bring much needed relief. New support for founders and entrepreneurs will similarly be welcomed.” 

“Nevertheless, Suffolk firms will be disappointed that efforts to support businesses did not go further, and begin to reduce the tax burdens imposed upon other sectors at Budget 2024 – including through a re-evaluation of employer National Insurance Contributions, and stronger efforts to reduce business energy costs.” 

“It is clear from devolution-related announcements that the Burnham’s administration intends for growth to be led more locally moving forwards. Approving the Norfolk and Suffolk mayoral devolution deal will be vital to take full advantage of these ambitions for Suffolk businesses, but so will the delivery of crucial infrastructure projects for Suffolk and the Eastern region. “ 

“If Healey and Burnham truly want to rewire the state and beat the OBR’s growth forecasts, more must be done to back Suffolk businesses.” 

 Charlotte Horobin, Chief Executive of Cambridgeshire Chamber of Commerce, commented: 

“Today’s Budget leaves many businesses in Cambridgeshire, Peterborough and Stamford with more questions than answers.” 

“The business-rates threshold increase is a step in the right direction but falls short of what the British Chambers of Commerce called for. The absence of employer NIC relief, business energy support and export provision means the short-term pressures most businesses are facing remain largely unaddressed.” 

“There are encouraging signals on place-based growth and devolution, but the practical test is simple: how quickly will these measures translate into lower operating costs, stronger investment and real opportunities for businesses on the ground?”