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What the 2025 Autumn Budget Means for Your Business

Team 365 Finance

Written by Team 365 Finance

What the 2025 Autumn Budget Means for Your Business

With the 2025 Autumn Budget now delivered on 26 November, UK SMEs face a mixed bag of changes that — for many — reinforce how important reliable, flexible funding is.

Key takeaways for business owners

  • The Government introduced a new 40% First-Year Allowance (FYA) on qualifying plant and equipment (for companies and unincorporated businesses), making equipment investment more attractive.

  • At the same time, the standard “writing down allowance” rate for depreciation of assets will be reduced (from 18% to 14%, from April 2026), which can increase taxable profits over the medium term.

  • For small retail, hospitality and leisure businesses, there is relief on business rates — the Budget brings permanently lower rates for thousands of premises in these sectors.

  • At the same time, many SMEs face rising costs: labour costs will increase next year due to a rise in the National/Living Wage to £12.71/hour for over-21s from April 2026 (with similar rises for younger workers).

  • Broader inflationary pressures persist. While the Budget aims to support longer-term economic stability, many SMEs are already feeling squeezed by higher costs for labour, materials, and general overhead

What this means for cash flow and SME stability

The latest Budget underscores a shifting landscape: some opportunities for investment, but also persistent — and for many, increasing — cost and tax pressures. For SMEs:

  • The new FYA makes upgrading equipment, investing in efficiency or expanding capabilities more financially viable.

  • But reductions in writing-down allowances and higher operating costs (wages, inflation) may compress margins over time.

  • For retail, hospitality and leisure businesses, business-rates relief provides welcome breathing space — but only if underlying demand and revenues remain stable.

  • Given ongoing uncertainty (from costs, consumer demand, regulatory and tax changes), maintaining flexible, revenue-linked funding may help businesses stay resilient.

 

 

Why 365 Finance’s Revenue-Based Funding is More Relevant Than Ever

In this environment of mixed pressures and opportunities, the kind of funding offered by 365 Finance remains compelling:

  • Flexible repayment linked to your revenues, meaning your repayments scale with cash flow — useful when sales fluctuate or costs rise.

  • Transparent, fixed fee structure (not interest), which avoids unpredictable interest-rate or cost volatility.

  • Fast access, minimal fuss — ideal if you spot a chance to invest (e.g. new equipment under the FYA), or need to bridge cash-flow gaps during leaner trading periods.

  • Support tailored to SMEs — as opposed to one-size-fits-all bank loans; a structure that can adapt as your business grows or changes.

 

What SMEs Should Do in Light of the Budget

To navigate the post-Budget landscape:

  1. Re-assess your 12–24-month cash-flow forecast — factor in higher wage bills and potential cost pressures, but also consider any investment plans (e.g. equipment, expansion).

  2. Explore whether now is the right time to invest — the new FYA could make equipment upgrades or expansion less costly.

  3. Consider flexible funding as a strategic buffer — whether to smooth seasonal dips, manage unexpected expenses, or act on growth opportunities without tying into fixed monthly repayments.

  4. Plan ahead for compliance and tax changes — consult with your accountant about depreciation rules, writing-down allowances, and how these affect profits.

  5. Stay agile — use tools and funding options that allow you to respond quickly if business conditions change

 

In uncertain times, predictable funding makes all the difference — helping you stay in control, move confidently, and seize new opportunities as they emerge.

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