By Charles Ferguson-Davie
Public Finances
- The Government’s primary concern should be the delivery of economic stability, which demands a disciplined focus on the reduction of borrowing costs and inflation.
- Lowering gilt yields will be key to reducing national borrowing costs and the benchmark cost of capital, so the Government should seek to reassure the bond markets as well as stimulate economic growth.
Autumn Budget Recommendations 2025
Taxation
- Real estate taxes have reached a point where activity is being curtailed, and they need to be reduced in order to stimulate activity. The Government should adopt a sensible approach to tax reform and recognise the role of real estate in driving economic growth, creating jobs, attracting investment, developing infrastructure, and facilitating long-term capital flows.
- The employer national insurance increases in the last budget have contributed to slower economic growth and higher unemployment – any new approach to tax changes must avoid damaging the economy and be balanced with cost savings.
- Given the above, the Government should reduce SDLT to encourage housing transaction activity, and with the 2026 business rate revaluation less than five months away, clarity must be provided and relief is encouraged.
Investment
- We urge collaboration with Local Government Pension schemes to design a model that supports national investment priorities and economic growth, while recognising fiduciary responsibilities to their members.
- Support the UK by ensuring that the ISA regime, pension funds and insurers are encouraged to invest in UK listed and private equity.
- We also encourage co-investing through public–private partnerships, which helps de-risk the delivery of large-scale infrastructure projects. This will not only support growth, but alongside transport infrastructure investment also help address regional economic imbalances and unlock further housing delivery.
- In addition to promoting domestic investment, the Government should focus on attracting overseas investors. Global institutions are seeking geographical diversification opportunities, and the UK would remain a priority investment destination if encouraged rather than discouraged.
Housing
- London’s emergency housebuilding measures have the potential to assist in the reversal of the drastic slowdown in housing delivery, but the late-stage viability review / ‘gain-share mechanism’ needs to be reviewed so it doesn’t discourage investment.
- Demand drivers such as a new ‘help-to-buy’ scheme (or similar) would assist in both delivery of new housing and encouraging home ownership, by tackling the affordability issues faced by many consumers.
- SME housebuilders should be recognised for their essential role in boosting housing supply and diversifying the type and tenure mix. Less onerous planning, regulatory and environmental requirements as well as funding support could be considered to help reduce development costs and boost supply.
- The Government should definitively rule out the prospect of rental controls in this parliament. UK residential-for-rent under professional ownership and management should be seen by Government as a vital component of the housing market. Care needs to be taken with the implementation of the Renters’ Rights Act to ensure that investment is not discouraged and that the tribunal process to approve rent increases is not overloaded like the Building Safety Regulator has been.
Energy
- Energy costs need to reduce in order to make the UK more competitive and ease household financial pressure. GDP per capita underperformance in the UK relative to the US is highly correlated to the reduction in UK oil and gas production and the increases in the US over the last 20 years – rather than import oil and gas we should maintain greater energy security and support North Sea investment.
- In order to grow energy security, reduce energy costs and carbon emissions more support for solar panel adoption and retrofit investment to improve energy efficiency is required (eg zero rate VAT on repairs and maintenance of homes where EPCs are being improved).
Employment
- Ensure that the Employment Rights Bill does not reduce growth or employment demand.