The Chancellor Rachel Reeves has unveiled a Budget that she maintains takes the fair choices to deliver on the country’s priorities of cutting the cost of living, reducing NHS waiting lists and driving down our borrowing and debt.
Despite a decade of damage and historic underinvestment under the previous government which led to a £16 billion downgrade to productivity, the Chancellor was clear she was determined to defy the forecasts and break Britain out of its cycle of decline through stability, investment and reform.
Despite achieving some key lobbying wins for landscapers, the British Association of Landscape Industries (BALI) has expressed an overall disappointment in the Budget 2025, with a lack of support being expressed in the landscaping sector, potentially damaging investor confidence.
“While today’s budget brings some welcome reliefs for the landscaping industry and we are encouraged that a number of the policies that we have lobbied government for have been enacted such as the reversal of the single rate Landfill Tax, we are disappointed that other areas, such as landscaping’s contributions to the environment, have been largely neglected,” said BALI Chief Executive Wayne Grills.
“Landscaping is well-placed to deliver on many of the government’s growth priorities, however any lack of material support for the industry means that opportunities to further expand a sector that contributes £38 billion to UK GDP annually will be missed. We feel there should have been more done on the environmental benefits that landscaping brings to the ecological health of the UK, as well as the enjoyment of spaces and community impact of landscaping developments.”
A “mansion tax” on high-value properties could see a contraction of the luxury-end of the market for landscapers, though it may also provide a boost to mid-range properties – an area which many feel has somewhat dried up since COVID-19.
Under this new tax, properties valued over £2 million will face a £2,500 annual charge, with it rising to £7,500 for properties worth over £5 million.
A freezing of income tax and NI thresholds until 2030-31 effectively increases tax for workers as wages rise with inflation. This means take-home pay for staff falls in real terms and increases pressure for employers to raise wages. Additionally, the rise in the minimum wage could lead to stretched budgets, increased prices, and a slowdown in hiring, with landscaping being a heavily labour-reliant industry and wages making up a large share of costs. Not only does this affect the lowest earners, but it has a knock-on impact on businesses whereby middle and higher earning roles may see a proportionate market increase.
Furthermore, while a freeze on fuel duty will be well received by many, those using EV’s will be hit by the introduction of an Electric Vehicle Excise Duty (eVED), which will impose a mileage-based charge on drivers of 3 pence per mile on fully electric vehicles and 1.5 pence per mile on plug-in hybrid cars.
“These issues have the potential to hit small and medium enterprises in particular, and in a sector that is already experiencing a skills shortage and still feeling the impact of previous budget decisions – for example the rise in Employer National Insurance Contributions (NIC) – it will create hesitation for many who would otherwise consider making positive investment and growth decisions. At a time when UK economic performance is underperforming forecasts, these anti-employment policies make little sense to us,” added Wayne. “That being said, while we await to see the detail of its implementation, the Government’s commitment to fully fund apprenticeships training for under 25yr olds for SME is a big win for landscaping and could help to mitigate some of these issues, encouraging young, skilled workers into the industry.”
HTA Chief Executive, Fran Barnes, said that whilst the Budget did contain some announcements which will have some benefits to our members and wider business, it is disappointing that the Chancellor missed an opportunity to deliver a pro-business and pro-growth budget that could have mitigated the challenges created by last year’s Autumn Statement.
“Businesses are still grappling with a perfect storm of rising costs. We hoped today’s announcements would give our sector and our customers the confidence and certainty they so critically need,” she continued.
“With no bold action to reverse or review inheritance tax changes, combined with rising costs and the Employment Rights Bill, the future looks very challenging for many family-owned businesses. While allowing the transfer of allowances between spouses is a welcome step, it is a minor adjustment on an Inheritance Tax policy with such a massive impact on our members, yielding minimal fiscal gain for the government. Additionally, the expected hikes in minimum and living wages continue to put further pressure on wage costs and increase reticence to recruit.
“As a sector proudly operating across the four nations of the United Kingdom, we welcome the efforts to boost regional spending, and the Windsor Framework support is welcome. The confirmation of SPS agreement ambitions, the reduction in costs for SMEs wanting to take on apprentices, the permanently lower rates for retail and hospitality, and the absence of anticipated changes to Landfill Tax are all positive announcements that we had been asking for. However, these feel like small steps when a giant boost in confidence is needed.
“SMEs are the driving force of the economy, and many are family-owned businesses. It is vital that they can operate in conditions which support their growth and give certainty if we want the UK economy to grow.
“We will now look at the full details of the Budget to understand the breadth of impacts and opportunities for horticulture. We need to see burdens removed and fair policies implemented, so that our members can continue to contribute to the UK’s health and wealth.”
Viki Bell, Chief Executive of the Construction Equipment Association (CEA), said the Budget maintains investment in some key areas, but offers little direct reassurance for the construction equipment industry.
“The sector was barely referenced in the Chancellor’s speech, despite its central role in supporting growth, infrastructure delivery and UK manufacturing,” she added. “Rising costs remain a major concern. The increase in the National Minimum Wage, alongside the extended freeze on income tax and National Insurance thresholds until 2031, will raise employment costs and reduce disposable income at a time when many SMEs are already under pressure. Freezing fuel duty offers some relief, but the new mileage charges for hybrid and electric vehicles will add costs elsewhere in the supply chain.
“Although funding for apprenticeships and skills is welcome, the lack of wider action on housebuilding or planning reform is a missed opportunity. With activity already subdued, the absence of targeted support for the housing market leaves a significant gap for the construction sector.
“We are also concerned that support to cut electricity prices for manufacturing will not begin until 2027. Energy costs are impacting UK manufacturers now, and delaying action risks weakening competitiveness and discouraging investment in new equipment.
“The Chancellor confirmed the continuation of full expensing and a new first-year allowance, which will support manufacturers and some contractors. However, because assets made available for hire are excluded, most plant hire companies will remain unable to access this relief.
“Major infrastructure schemes were referenced, but today’s strict fiscal rules mean delivery is far from guaranteed. What our sector needs is certainty. The construction equipment industry continues to face rising input costs and a slowing market, yet the Budget leaves many key questions unanswered.
“We are now working through the detailed Budget tables and will provide members with a full report in the coming days.”
