Autumn Budget 2025: The 6 changes UK small businesses should watch
Published 19 October 2025 by UKBN Team Finance
What’s happening (and when)
Chancellor Rachel Reeves will deliver the Autumn Budget on Wednesday 26 November 2025. HM Treasury has confirmed the date.
1) Business rates: relief changes already locked in for 2025/26
For 2025/26, eligible retail, hospitality and leisure properties can get 40% relief (cash cap £110k per business). This is a step down from the temporary 75% relief used previously. Local authority guidance and GOV.UK confirm the 40% rate and cap. Action: model your 1 April 2025–31 March 2026 bills now.
2) “Fairer” business rates reform signals for new premises
The Treasury says it’s exploring pro-growth tax reforms to make it easier for small firms to open or expand premises. Expect detail and potential pilot measures alongside or after the Budget.
3) Late-payment regime: biggest shake-up in decades
Government proposals (consultation closing 23 Oct 2025) would:
- Give the Small Business Commissioner spot-check powers;
- Enforce a 30-day invoice verification period;
- Introduce maximum payment terms of 60 days, falling to 45 days later.
If legislated as trailed, large buyers will face stricter duties and enforcement. Prepare by tightening your own order-to-cash process now.
4) Access to finance: BBB schemes scale up
- Growth Guarantee Scheme (GGS) continues via accredited lenders (term loans, overdrafts, asset/invoice finance, ABL) — with a Green GGS pilot for sustainable assets.
- Start Up Loans expansion targets £1bn+ additional lending over the SR period (avg loan c. £15k).
If your bank won’t play ball, check challenger lenders on the GGS list.
5) Tax direction: no rises in the “big three” pledged, but pressure elsewhere
Independent briefings note Labour’s pledge not to raise Income Tax, National Insurance or VAT — but weak headroom means other revenue levers could move (allowances, reliefs, wealth/asset bases). Read this as “expect design tweaks over rate hikes.”
6) Sector competitiveness and investment signals
Recent briefings emphasise keeping the UK competitive for finance and life sciences, while maintaining fiscal discipline — i.e., limited giveaways, targeted incentives. Calibrate expectations accordingly.
What to do this week (practical checklist)
- Model your 2025/26 rates bill at 40% RHL relief and check the £110k cap doesn’t bite across sites.
- Shorten your DSO: move to e-invoicing, attach POs, and add late-payment interest terms that align with the proposed 30/60→45 framework.
- Line up finance: speak to two GGS lenders (bank + challenger) and pre-qualify for facilities before the seasonal rush.
- Scenario plan taxes: stress-test for allowances/relief tweaks rather than headline rate changes.