What the 2025 Autumn Budget Could Mean for Your Business

What the 2025 Autumn Budget could mean for your business

With the 2025 Autumn Budget set for 26th November, uncertainty is growing around what Chancellor Rachel Reeves will announce. Last year’s Budget — widely referred to as a “tax raid” due to over £40bn in new taxes — placed significant pressure on UK SMEs. Higher wages, increased employer NICs, and a wider inflationary environment all contributed to tighter margins and reduced growth.

Twelve months later, small businesses are preparing for a challenging outlook.

According to Novuna Business Finance’s latest Business Barometer, SME confidence has fallen across every sector, hitting a five-year low. Only 25% of small business owners expect growth in Q4 2025 — the fourth consecutive quarterly decline.

The message is clear: SMEs are feeling the pressure and are anxious about what comes next.

What could be announced and what it means for SMEs

1. More Tax Rises?

Reeves has pledged to keep “taxes, inflation and interest rates as low as possible,” but she has not ruled out future increases to corporation tax or National Insurance. Any additional rises would cut deeper into SME cash flow, potentially affecting:

• Hiring and staff retention
• Investment in new products or equipment
• Expansion plans
• General financial stability

2. Hiring & Salary Pressures

If employer costs rise again, SMEs may be forced to pause:

• New hires
• Internal promotions
• Salary increases

Legal experts also warn that some firms may need to reorganize teams to manage rising costs — potentially leading to redundancies. Careful workforce planning, combined with flexible funding options, will be crucial for navigating this period. This has already been seen in the accounting sphere in regard to higher levels of compliance.

3. Incentives for Digital Adoption & Sustainability

The government has repeatedly signalled that long-term growth will rely on higher productivity and greener operations. These are two areas where SMEs often face financial barriers. This Budget may introduce or expand incentives such as digital transformation grants, tax relief for adopting new technologies, or support for transitioning to energy-efficient systems.

For SMEs, this could mean:

• Reduced upfront costs for upgrading software, equipment, and digital tools
• Improved efficiency through automation, cloud systems, and AI-driven processes
• Access to grants or tax benefits for sustainability projects, from greener supply chains to lower-carbon operations
• A competitive boost in sectors that are rapidly modernising

Proactive adoption of digital and sustainable practices not only cuts long-term costs but also strengthens resilience — and businesses that adapt early often see the fastest growth.

Conclusion

As the Autumn Budget approaches, the reality for many SMEs is a mix of rising costs, tightening margins, and a policy landscape that’s still in flux. Whether the Chancellor opts for further tax changes, adjustments to employer obligations, or new incentives for digital and sustainable investment, the message for business owners is the same: preparation matters. The next few months will reward SMEs that stay informed, protect their cash flow, and take advantage of support where it’s available. With the right funding and planning, uncertainty doesn’t have to stall ambition – it can be the moment you strengthen your position and move ahead with clarity and confidence.

Whatever the Chancellor announces on 26th November, 365 Finance is here to help you stay agile, supported, and ready for what’s next. While tax changes, market volatility, and shifting lending conditions may impact traditional lenders, our funding stays:

• Transparent
• Revenue-linked
• Accessible
• Designed for real SME cash-flow needs

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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