Prosper response: Budget 2025

Responding to Chancellor’s Budget, Sara Thiam, Chief Executive, Prosper said:

“There will be some relief across industry that, after months of speculation, there is now a degree of clarity about the direction of government policy. However, there is little doubt that this will be a tough budget for many businesses, compounding the decisions made on tax in the last budget.

“In particular, it is deeply disappointing that implementation of the long-awaited replacement for the Energy Profits Levy (EPL) has been delayed until 2030 or when the sunset clause is triggered. The government should not delay: the EPL is driving serious deindustrialisation and job losses in Scotland now as well as making it harder for the supply chain to invest in clean energy.  As we have always said, the focus should be on how we maximise our resources to meet our current and future energy needs and economic opportunities. The licensing changes are a step in the right direction, but without a fiscal regime that will incentivise investment, they’ll have a very marginal benefit.

“Key Scottish growth industries continue to be ignored with spirits duty increasing with inflation and the changes to inheritance tax from the last budget untouched – both of which are damaging growth.

“It will be for politicians in Holyrood to decide how the £820m in additional funding for the Scottish government will be spent in its budget in January and whether the pain of more UK tax rises is outweighed by improved delivery of public services in Scotland.

“While higher inflation has flattered the public finances, it shows there are continued difficulties in the cost of living for consumers and the trading environment for many businesses. And although the upgrades to growth forecasts for this year provides some good news for the economy, that will be short-lived with the OBR cutting its medium-term assessment of productivity growth.”