The UK government unveils a budget aiming to support working households and businesses, but critics argue it includes a £26bn tax hike and broken election promises. Industry commentators respond to leaked budget details, expressing concerns and preparing for impact. Comments from firms on the budget are ordered alphabetically for clarity.

Uncertainty around the budget has shaken confidence in the banking sector, impacting households and businesses. The decision not to increase levies on banks was welcomed, recognizing their critical role in supporting growth. The sector hopes the measures will foster innovation and competition, benefiting customers in the long run.

Property Income Tax will rise by 2% by April 2027, affecting both tenants and landlords. Landlords face increased tax rates, potentially leading to higher rents as they struggle to maintain profits. The government targets ‘accidental’ landlords, impacting the housing market’s supply and affordability, with HMOs facing the brunt of the tax hikes.

The Chancellor’s budget introduces a 2% tax increase on dividend and savings income, impacting taxpayers differently than employment income. Tax reliefs are available for lower earners, but the changes could affect investment decisions. Critics suggest implementing modern tax policies to address emerging challenges like AI labor and minimum wage for robots.

The Budget introduces changes to Stamp Duty Reserve Tax, offering a three-year exemption for shares in newly listed companies on the London Stock Exchange. The move aims to encourage investment in UK companies and boost market competitiveness. Long-term investment incentives and reduced costs for listed companies are crucial for fostering economic growth.

Read more at Yahoo Finance: UK budget: financial services sector reaction