Autumn Budget 2025: What it Means for Your Business

Chancellor Rachel Reeves delivered her second Budget today with a mix of measures affecting businesses across the UK.

After weeks of speculation, here's what your business needs to know.

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The headline figures

The Office for Budget Responsibility (OBR)¹ confirmed the Budget will raise £26.1 billion in taxes by 2029-30, primarily through freezing personal tax thresholds and multiple smaller measures. The overall tax burden will reach 38% of GDP by 2030-31.

Growth forecasts were revised to an average of 1.5% across the forecast period, down 0.3 percentage points from March projections due to lower productivity expectations.

At a glance: Key business measures

What could help your business

The government has outlined a range of new policies that have the potential to benefit businesses. Let's break them down.

Free apprenticeship training for SMEs

The chancellor announced that training for under-25 apprenticeships will now be completely free for small and medium-sized enterprises.

This removes a significant barrier for businesses looking to develop young talent and fill skills gaps.

Previously, SMEs with annual pay bills under £3 million paid up to 5% of apprenticeship training costs, with the government covering the rest².

The new policy removes this co-payment for under-25s, representing a cost saving for businesses investing in young workers.

Corporation tax unchanged

Corporation tax rates remain unchanged. The main rate stays at 25% for businesses with profits over £250,000, with small profits relief continuing for those earning less.

This provides certainty for businesses planning investments and cash flow over the coming years.

Extended enterprise incentives

The government expanded the Enterprise Management Incentive scheme, allowing more companies to offer tax-relieved share options to employees.

Enterprise Investment Scheme and Venture Capital Trust schemes were also "re-engineered" to support companies as they scale beyond early-stage.

These changes could help growth-focused businesses attract and retain talent through equity compensation.

Fuel duty freeze extended (temporarily)

The 5p fuel duty cut introduced in 2022 will be retained until September 2026, though it will then be reversed through a staggered approach.

For businesses with vehicle fleets or distribution operations, this provides short-term cost relief, though planning for increases from late 2026 will be necessary.

What could increase costs for your business

While some of the measures from the chancellor's Budget can support businesses, other areas may create challenges. Here are some of the key changes to factor into your business planning.

Minimum wage increases

The National Living Wage for workers aged 21 and over rises 4.1% to £12.71 per hour from April 2026.

For 18 to 20-year-olds, the increase is higher at 8.5% to £10.85 per hour. Younger workers and apprentices will see a 6% rise to £8 per hour.

For businesses with employees on these wages, this adds to labour costs already elevated by last year's employer National Insurance Contributions (NIC) increase to 15%, which took effect in April 2025.

Income tax threshold freeze extended

Personal tax thresholds remain frozen until 2030-31 – three additional years beyond the previous 2028 deadline.

This could see more employees move into higher tax brackets as wages rise with inflation.

The freeze means 780,000 more people will pay basic-rate tax, 920,000 more will enter the higher-rate bracket, and 4,000 additional taxpayers will hit the additional rate by 2029-30.

While this directly affects employees rather than businesses, it could create pressure for wage increases to offset reduced take-home pay, particularly when competing for talent.

Pension salary sacrifice changes (from 2029)

A £2,000 annual cap will be introduced on salary sacrifice pension contributions receiving full tax relief, starting from April 2029.

Contributions above this threshold will attract standard National Insurance rates³.

For businesses offering salary sacrifice pension schemes as part of their benefits package, this represents a change that will need to be communicated to employees, particularly higher earners who currently sacrifice more than £2,000 annually.

The delayed implementation until 2029 provides time to prepare and adjust benefits strategies.

Business rates

Business rates changes were announced in the Budget, though specific details require further analysis from the full OBR report.

Businesses in retail, hospitality, and leisure sectors should monitor announcements closely, as these sectors are typically most exposed to business rates changes.

The government has indicated measures affecting business rates relief, but comprehensive details on rates, thresholds, and sector-specific impacts are pending.

Market reaction: Sterling shows volatility

The pound rose from lows of $1.312 to as high as $1.322⁴ during the Budget announcement, with volatility continuing throughout the afternoon.

Domestic financial markets generally received the announcement positively, with sterling up, gilt yields down⁵, and FTSE 100⁶ showing modest gains in the hours following the chancellor’s speech.

For businesses sending and receiving payments in GBP, this volatility underscores the importance of managing multiple currencies effectively.

How Wise Business can help

If your business makes international payments, currency volatility following the Budget creates both risks and opportunities. Wise Business offers:

• The mid-market exchange rate with transparent fees – no hidden markups when converting currencies
• Fast international transfers – convert 40+ currencies and send at speed when you need to act quickly
• Auto-conversion to capitalise on potential opportunities during periods of volatility

With the pound volatile following the Budget, having the right tools to manage your currency exposure efficiently can protect your margins.

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Sources used:

Sources last checked: 26/11/2025