The Autumn Budget 2025 - what smaller businesses should watch for

As we approach the delivery of the Autumn Budget on 26 November 2025, there is a palpable note of caution among smaller businesses. With public finances under strain and growth prospects modest, the Chancellor faces a tight balancing act.

If you run a small or medium-sized enterprise (SME), here’s a look at what to keep an eye on and some practical steps to take.

Fiscal constraints and the broader setting

The government faces a huge dilemma. It needs to find a way to keep day-to-day spending in check and reduce debt as a share of GDP, while meeting commitments made during the past year.

That means fewer headline giveaways and more subtle moves behind the scenes. Many business owners expect tax pressure rather than tax relief. Indeed, one survey found 75% of businesses anticipate further business-tax increases this year.

For SMEs, this means planning ahead.

Key areas that may affect smaller businesses

Here are some of the headline-areas we expect will matter to smaller firms:

Business rates reform

There are hints the Budget may include measures to reform business rates, especially for retail, hospitality and leisure properties, including further support for smaller rateable-value premises.

If your business occupies premises, this is an area to monitor carefully: reliefs may help, but they may also come with qualification criteria or transitional arrangements.

Thresholds, allowances and regulatory burden

There are suggestions the government could raise the “trading allowance” (used by small businesses to offset small sales) or adjust VAT registration thresholds.

Additionally, simplification of regulatory burdens (for example, reducing some Companies House filing obligations) has been mooted. For many smaller firms this may turn out to be welcome, but the savings may be incremental rather than transformative.

Taxation of property, wealth and landlord income

Although this is less directly relevant to many small trading businesses, the broader tax environment matters. Reforms to capital-gains tax, property taxes and possibly National Insurance on rental income are being discussed.

If your business owns property, or plans to expand or sell assets in future, these changes could shift your planning horizon.

Confidence, growth and investment

One of the most worrying signals is the drop in SME growth expectations. The Federation of Small Businesses (FSB) recently reported that more small firms expect to shrink than grow over the next year.

This matters because even if the Budget delivers modest help, the impact may still be muted.

Practical advice for smaller businesses

Before the announcements, the most helpful things you can do now are:

• Review your budgets and cash-flow projections. Ask “What happens if tax or cost burdens rise slightly more than expected?”
• Keep an eye on thresholds and reliefs. For example, check if your turnover approaches a VAT or trading-allowance threshold, or if your premise’' rateable value could move you into a different business-rates bracket.
• Don't delay investment just because you’re waiting for the Budget. If a capital purchase, hire or expansion makes sense now and fits your strategy, waiting may cost more in lost opportunity than any marginal benefit from a timing play.
• Consider longer-term planning rather than short-term reaction. The Budget is important, but for small businesses what matters is your position over the next 3-5 years. One set of measures won’t change that.
• Talk to your accountant or adviser now. Make sure you’re ready for any changes rather than being reactive after the event.

What to do?

While the Autumn Budget holds concerns for smaller businesses, the key for smaller businesses is to use the Budget as a prompt for planning, rather than become a reason for paralysis.

If you would like to explore how the Budget might impact your business (whether in tax planning, forecasting or investment decisions), Collective Concepts Accounting is here to help. Get in touch with the Brighton office: 01273 035330

If you want to contribute to the Chamber blog, contact us on hannah@brightonchamber.co.uk