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The South West reacts to Budget announcements

Q: What is this business story about?

Tourism and business leaders have been reacting to John Healey's first Budget as chancellor.

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This story was published by BBC Business on October 29, 2026 and curated on Africa Front.

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West Africa News, African Business, South Africa News

October 29, 2026

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The South West reacts to Budget announcements

Published2 hours ago

Tourism and hospitality leaders have been reacting to this week's Budget.

Among the headlines in chancellor John Healey's first Budget on Wednesday were a £100 payment to help millions of households with energy bills, a VAT cut on electricity bills and a freeze on fuel duty, both extended to July.

It also announced Devon would get an elected mayor in 2028 white Cornwall was included as the only area on a pathway to become a Foundation Strategic Authority.

Sue Jewell, chair of South East Cornwall Tourism Association and a holiday accommodation provider, said the budget "gave with one hand and took with the other".

As part of the Budget legal minimum wage is to rise by 3.9% in April

Jewell said: "I think it's tricky because actually I would believe that quite a lot of people in our business anyway pay over the minimum wage just to retain staff.

"However because of the cost we've cut back on staff.

"Which is sad really because it's local people who could be having local jobs."

Dr Harry Pitts, senior lecturer in Politics at the University of Exeter's Cornwall Campus, said the £100 energy payment was one of the "small things to make life a little easier for some households in the immediate period".

Anyone living in a home in council tax bands A to D in England, will receive a one-off £100 "Household Energy Payment", funded by extra tax on banks.

'Scary for business'

The Budget announced the threshold at which high street shops start paying business rates in England was to be increased from £12,000 to £18,000, meaning businesses would pay no rates on properties with a rateable value below this level.

Toby Parkins, interim ceo at the Cornwall Chamber of Commerce, said he predicted this would benefit about 900 extra businesses in Cornwall.

"For the small business that is a big win," he said.

Helen Wylde-Archibald, from the Devon Chamber of Commerce, said she "welcomed some stability".

"The last two have been a bit scary for business," she said, referring to previous Budgets.

She added: "It doesn't necessarily give us all the conditions we want for full growth and strong growth, but the main thing was there was no broad base business tax rises and fuel duty remains frozen until July."

She said she didn't think there was enough in the way of announcements of more support for farming and food, and this had "an impact on the rural economy".

'Just so sad'

James Kittow, from Butcher & Grazier in Cornwall, said: "It just seems like we've been forgotten again.

"We're an industry that is ready, willing and able to help the country produce the food for the nation."

He added there was no change on inheritance tax for farmers. Since April, inherited farming assets worth more than £2.5m face 20% inheritance tax

"I'm looking to plan for a succession... we want to keep farming, we want to keep doing what we love doing but if we're going to get hit on the other end of it then it does make you think twice about what is all this for, and it's just so sad for the future farmers that want to come into the trade," he said.

'Existing property'

Andrea Drew, managing director at Lander Mortgage Services, said the key announcement relating to housing was a scheme for first time buyers, and a a "First Time Buyer Isa".

This is an account in which savers can build up a deposit, with the government topping up contributions of up to £4,000 each year with a 25% bonus.

"The only negative I would say... on new builds, the housing market isn't just all about new builds, it's about existing property... because not everybody wants to have a new build property," she said.

She added: "The other thing was about the increase in tax for landlords so, they're increasing the tax by 4%."

She said she'd seen landlords who decided to sell their property because of the amount of tax but tenants couldn't afford to buy the homes.

"What tenants need is more homes to choose from, not fewer, and they can't solve the housing shortage by destroying people who are providing the housing," she said.

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