What could the 2025 Autumn Budget mean for SMEs?

Ahead of the 2025 Autumn Budget Announcement on the 26th November, speculation is mounting as to what the Chancellor of the Exchequer, Rachel Reeves, will reveal. Described as a ‘tax raid,’ the previous Budget Announcement (which sought to raise over £40bn in taxes,) put SMEs at a disadvantage due to the increased financial burden of higher wages and increased employer NICs alongside an inflated financial landscape.   

Fast-forward 12 months, and SMEs are predicting a dip in growth forecasts. Data from Novuna Business Finance’s quarterly Business Barometer shows that SME confidence is down across every industry sector in anticipation of Reeves’ announcement. In a five-year low, just 25% of small business owners predict growth in Q4 2025, which marks the fourth consecutive quarterly fall. The picture is clear – small and medium-sized firms are apprehensive about what is to come. 

Before we consider what the 2025 autumn budget announcement might look like for SMEs, we’ve added a recap of last year’s main points: 

The 2024 Autumn Budget Recap: 

Some of the key points unveiled in the 2024 Autumn Budget announcement included: 

• The national minimum wage was increased by 6.7% to £12.21 per hour for adults, with higher rates also for younger workers.
• April 2025 saw a hike in Employers’ National Insurance contributions (NICs) to 15%, a factor that has caused some financial challenges for SMEs throughout the UK. 
• A rise in Capital Gains Tax: basic rate from 10% to 18%, higher and additional rates from 20% to 24% (residential property rates unchanged).
• 20% VAT levied on private boarding school fees. 
• Tax rule changes for non-UK domiciled people replaced by a residence-based tax system.
• Stamp Duty Land Tax surcharge on second homes and buy-to-let properties increased from 3% to 5%.
• Tightened rules for inherited pensions and agricultural/business property.
• A £100 billion capital investment plan spanning five years for transport, housing, and research and development.
• A new 40% business rates relief for many retail, leisure, and hospitality businesses, with small business rates multipliers frozen.
• Overall aim of raising around £40 billion in taxes, with planned borrowing to support public services and long-term investments.

How will the 2025 autumn budget announcement affect SMEs? 

After last year’s tax increases, the biggest concern likely to be plaguing SMEs is the potential for even more tax hikes. However, these concerns don’t exist in a vacuum – there are various factors at play. These include overall market uncertainty, US tariffs, the after-effects of Brexit on business confidence, and the looming Autumn Budget. Below, we’re considering some of the possible scenarios we might see in the announcement, and what they could mean for SMEs.     

Tax Rises for 2026: Will She or Won’t She?

In her September speech at Labour’s annual party conference in Liverpool, the chancellor pledged to keep “taxes, inflation and interest rates as low as possible.” However, she did also add that the government’s choices had been made “harder” by international events and the “long-term damage” done to the economy. Reeves has made no explicit promises to avoid any further changes to corporation tax or National Insurance contributions, meaning the burden on businesses could still increase. If this does come to pass, SMEs everywhere will be affected. Higher taxes could have a knock-on effect on wider business plans, such as hiring, promotions, development, and expansion. 

Potential Hiring or Salary Freezes

Following on from the potential tax-increase scenario above, SMEs may find themselves in the difficult position of assessing whether they can afford to hire more workers or go ahead with internal promotions and pay increases. Joanne Moseley, Senior Associate Solicitor at Irwin Mitchell, predicts “it’s also possible that employers will need to reorganise their workforces to accommodate these increased costs and that may, ultimately, lead to redundancies.” While the outlook poses challenges, it also highlights the importance of strategic workforce planning – or seeking manageable funding from elsewhere – to balance rising costs with business sustainability. 

Incentives Around Digital Adoption & Sustainability 

AI-driven technology and digital solutions are a hot topic right now (particularly with the Government’s plans to introduce a digital ID being so timely,) so it would be unsurprising to see some form of incentive offered to small to medium-sized enterprises around digital adoption and sustainability. These incentives may have small application windows, and so SMEs should actively be looking at their business through the lens of innovation to identify any areas where technology or sustainability upgrades could boost productivity or open new markets. 

Easier Access to Finance 

Many 2025 reports have highlighted the need for easier access to SME finance in the UK. In the 2024 Autumn Budget Announcement, the Government set out its intention to publish a Small Business Strategy, “setting out the government’s vision for support for small businesses.” This was published in July 2025, setting out promises to tackle late payments, launching a new Business Growth Service, and more. However, the real-world reality remains a mixed picture. Reeves may address this in her announcement, giving SMEs a clear roadmap to extra funding.

Additional funding options – especially those linked to growth, apprenticeships, or exports -could provide a much-needed boost. Businesses should be ready to jump on any such opportunity – Extra funding could ease the pressure and give the entire team more confidence to take that next step. Having an up-to-date business plan and a clear growth story will put them in a strong position if new finance initiatives open up.

Fast, Friendly & Fair: SME Finance from White Oak UK

One of the UK’s most trusted business finance providers for almost 40 years, White Oak UK is committed to delivering fast, fair, and flexible funds through a range of different products. As specialists in SME finance, we have a unique, in-depth understanding of how things work across the different industries – we work with clients in sectors such as technology, retail & hospitality, healthcare, manufacturing, transport, and much more. We’ve made it our business to anticipate the needs of our clients, building our product offering around them and providing same-day funding solutions.   

“We explored various banking options, yet found none aligned with our needs. White Oak UK, however, demonstrated a thorough understanding of our business, making the financing process seamless.” – Owners, Alchemy Coffee. 

We take a more bespoke approach than traditional lenders, working with our clients and often collaborating with our network of other trusted lenders and brokers to find the very best financial solution. Whether you’re worried about the economic uncertainty of the Autumn Budget Announcement, or you simply want to partner with a lender that can help you scale to success, White Oak UK is on hand to assist. 

Get in touch with us online, or by calling one of our experts on 0333 014 9000. 

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