The Association of Corporate Treasurers responds to The Budget
In many ways, the Chancellor's dry delivery was in keeping with the Budget's overarching theme of ‘breathing space’ and, while it was missing detail on some important areas such as welfare reform, defence or the UK's future relationship with the EU, in tone it was more pragmatic and reassuring, avoiding the surprises of recent budgets.
The Chancellor acknowledged that while UK economic growth has shown some resilience during 2026, concerns remain over inflation, the health of the public finances, and volatility in financial markets. Businesses looking to invest and grow need clarity, certainty and consistency from government. We welcome the Chancellor's emphasis on meeting his fiscal rules to reassure bond markets, which in turn drive borrowing costs for businesses.
Although the Chancellor recognises the financial challenges for businesses, the key test is delivery. Arguably today’s Budget could have gone further to help create the stable, predictable environment that unlocks business investment and ultimately economic growth.
It will be deeds, not words or headlines, that matter most.
Business Taxation and Investment
Predictable tax policy helps businesses plan and make long-term investment decisions. While confirmation on increasing the bank surcharge did not come as a great surprise, our view is that any additional taxation or levies on banks, even if they are time-limited, must be assessed alongside regulatory capital requirements and carefully calibrated to avoid unintended consequences. The reality is that higher costs for financial services providers often translate directly into higher costs for businesses accessing credit and cash management.
Growth, Delivery and Skills
We welcome measures that support investment in infrastructure, technology and skills. The UK needs a strong pipeline of trained finance, treasury and risk professionals to help businesses manage increasing financial complexity and contribute to sustainable growth. Clear, consistent policy will be important for turning the Government's ambitions into investment and jobs. One area that stood out is the Fiscal Devolution Roadmap, which could transform regional and city economies. It is very much at an embryonic stage but could be significant both politically and economically.
Additionally, support for the British Business Bank and National Wealth Fund could help improve access to finance, particularly for growing businesses. We will look closely at the detail and how effectively the support reaches businesses across the UK.
Competitiveness, Finance and Regulation
Business may have avoided the Budget ‘sharks’ this year, but they will need to scrutinise the raft of accompanying documents to check for any piranhas among the goldfish. In particular, there are a number of technical measures on corporation tax and corporate reporting that may require closer scrutiny. We support initiatives that aim to reduce the administrative burden on business, in keeping with the ACT’s pre-Budget report on legal and regulatory considerations for promoting the UK as a Treasury Centre.
The UK has significant strengths as a global financial and business centre, but competition for international investment is intensifying. While the Chancellor did not discuss this in detail today, we encourage the Government to develop a strategy to attract and retain corporate treasury centres in the UK. It is a gateway for attracting Foreign Direct Investment and bringing with it jobs and opportunities to the UK as a whole.
Energy
Action to reduce energy costs should be welcome for businesses as well as households. However, it should be accompanied by clear, predictable policy so that organisations can plan the investment needed to meet their long-term energy and net-zero commitments.
Enquiries to technical@treasurers.org
Image credit: “Chancellor John Healey prepares to deliver the Budget” by HM Treasury, CC BY-NC-ND 4.0