What the 2025 Autumn Budget Could Mean for Small Businesses: 5 Smart Moves to Prepare Now

The Autumn Budget 2025 arrives at a crucial time for small and medium-sized enterprises (SMEs).

The Office for Budget Responsibility (OBR) expects GDP growth to slow to around 1% in 2025, while inflation remains above target. (researchbriefings.parliament.uk) Meanwhile, the Office for National Statistics (ONS) reports that 17% of trading businesses have no cash reserves – the highest level since records began. (ons.gov.uk)

For owners and directors, the Autumn Budget 2025 won’t just set new tax and spending plans; it will shape confidence, credit availability, and the cost of doing business for the year ahead.

Key Areas That Could Affect Your Business

Here are four major policy areas to watch and why they matter for you.

1. Business Rates & Premises Costs

The government has already published an interim report on business rates reform, signalling that changes will be confirmed at the Budget. A possible course could include extending or enhancing the Small Business Rates Relief (SBRR) for smaller premises, shifting burdens elsewhere. For a business with premises (shop, studio, office), this could alter your monthly fixed costs significantly.

2. Tax Reliefs, Allowances & Investment Incentives

With the government committed to not raising headline rates of corporation tax, income tax, VAT, or NI in this Parliament, the focus may shift to reliefs and allowances instead. For example, extending full-expensing allowances (100% first-year relief) to more kinds of investment or altering EMI/share option thresholds for growth businesses could be on the table.

3. Cashflow, Funding & Credit Lines

Uncertainty makes lenders more cautious and businesses more vulnerable. While SME lending shows some signs of life, policy shifts and cost pressures mean you should not wait for an ideal moment. If you’re planning equipment purchases, hiring, or expansion, being in a strong funding position ahead of the Budget gives you an advantage.

4. Director Remuneration & Cost Structures

For company owners and directors, changes to dividend allowances, employer NI, or reliefs are possible targets. These could affect how you extract value from your company or pay yourself. Small adjustments now might help protect your personal and business position later.

Five Smart Moves to Prepare Before the Autumn Budget 2025

Rather than waiting for the Chancellor’s speech, here are practical steps you can take today.

Move 1 – Update Your Forecasts & Cashflow Models

Revise your projections to include “what-if” scenarios: e.g., business rates rise 5–10%, reliefs cut, cost base increases. Understanding your flexibility means you can respond faster.

Move 2 – Book a Pre-Budget Review with Your Accountant

Get ahead of potential tax, funding, or remuneration changes. Few firms take action early; doing so puts you in the minority who are prepared, not reactive.

Move 3 – Check & Secure Your Funding Lines

If expansion, hiring, or capital investment is on your horizon, apply or refresh credit/funding lines now. Waiting until after budget announcements might mean stricter terms or delays.

Move 4 – Review How You Pay Yourself & Your Cost Base

Examine whether your salary/dividend split remains optimal, and whether your cost base (premises, input costs, staff) is lean. Changes ahead of policy announcements are more flexible.

Move 5 – Plan for Business Flexibility

Whether it’s diversifying revenue, automating parts of the process, or scaling down non-core operations, the best-run SMEs build agility into their plans so they can pivot if needed.

Frequently Asked Questions

Q: How should a small business prepare for the Autumn Budget 2025?

A: Review your cashflow and forecasts, talk to your adviser early, secure funding lines, and build flexibility into your business so you can adapt quickly when changes hit.

Q: Will the Autumn Budget have a big impact on small businesses?

A: Yes, while headline tax rates may remain stable, changes in reliefs, rates, premises costs, and business-support measures can still significantly affect your profitability and strategy.

Ready to Plan Ahead?

Whether you’re remortgaging, refinancing, or investing, it pays to have a clear strategy. Let’s review your position, explore your options, and map out a tailored plan that supports your goals.

👉 Book your free consultation today info@financewithstuart.co.uk

Each of these affects what lenders will offer you and how much you can safely borrow.

Disclaimer: Finance with Stuart is a personal brand of Kingston Finance Ltd (Company No. 14227379), which is an Appointed Representative of Connect IFA Ltd (FRN 441505) authorised and regulated by the Financial Conduct Authority. General information only, not financial or legal advice.