While expectations were high for what the 2026 Autumn Budget might mean for businesses, the lack of major upheavals might be concealing some core concerns affecting businesses, cautions leading Preston accountancy firm Rotherham Taylor Limited.
With a continual emphasis on delivering breathing room for individuals and businesses, Chancellor John Healey outlined a range of small changes without announcing any significant overhauls that would dramatically change the economic conditions facing the country.
The optimistic note may have been appreciated by those watching along, as would the commitments to mitigating the ongoing impacts of the Iran war, but the gap between those who may benefit from the Budget and those who have been overlooked was palpable.
Rebecca Bradshaw, Director at Rotherham Taylor Limited, said: “The Chancellor had a clear vision about driving innovation in the UK and empowering entrepreneurs to take their chances in getting a business going despite the ongoing difficulties they would likely face.
“While this is important for keeping the economy moving, there is deep concern that an entire section of the business community has once again been forgotten.”
The Government’s plans to adjust Business Rates will be welcomed by many, as the increased threshold of £18,000 will see approximately 70,000 more businesses no longer liable for payments.
Retail, hospitality, and leisure businesses above the threshold will have the rates frozen for two years, though there is a question of whether this will offset rising costs elsewhere.
“Businesses in Preston will once again be tasked with managing higher employment costs in the wake of an increase to the National Minimum Wage (NMW) and National Living Wage (NLW).
“While the small businesses that rely on low-paid staff may be given provisions to handle the increase, slightly larger businesses that employ graduates face little to no support despite the need to increase salaries across the board.”
The new NLW of £13.20 an hour will see workers over 21 earn £25,740 annually for working 37.5 hours or £27,456 for working 40 hours.
As the median graduate salary for those 15 months out of university is only £28,500, employers can expect those who conduct more skilled work to have firm expectations around pay increases.
With little Government support on offer for many key businesses, Rebecca expressed concern that many would struggle to maintain equity in pay bands.
“It will be disappointing for employers who work with graduates to once again face rising employment costs with little support,” Rebecca said. “A thorough engagement with finances is going to be necessary and further details around the reduction in red tape could clarify whether savings could provide the necessary assistance.
“Young people on the whole are the clear winners of this Autumn Budget. The upcoming limit to Cash ISAs has been scrapped and additional ISAs are being established and tweaked to better support first-time buyers and first-time investors.
“The measures taken to support entrepreneurs through a new Capital Gains Tax Founders’ Relief and tripling the generosity of the Trading Allowance could see some exciting new businesses take root in the UK.”
Other key measures introduced to assist businesses and individuals manage their bills included an abolition of gas standing charges by the end of 2027 and an extension of the 5p fuel duty cut and freeze, now remaining in place until 1 July 2027.
Much talk was made of devolution, both in terms of investment and in the ways that financial obligations could be imposed in the future, with an aim of empowering Local Authorities to make adjustments that better suit the region.
“Being based in Preston, we can appreciate the ways in which targeted investment could help our economy and are on hand to make sure businesses understand what rules will apply to them and what opportunities are present.
“There could be challenges for businesses operating in multiple regions if rules and reliefs vary too much, so we will continue to look out for further details on devolution as they are announced.”
Ultimately, while the Autumn Budget had been expected to be a major reset for the UK economy, the Chancellor elected to make small changes designed to push things back towards the rosier predictions made in the 2026 Spring Statement.
Rebecca said: “There were some key points about the next Spending Review that were suggested in this Budget that will need to be handled by businesses and individuals when they come to pass.
“In the meantime, getting professional accounting support will be vital for those looking to understand which of the many tweaks and changes impact them and whether this Budget is a net positive for them or if it will increase hardship.”
Rotherham Taylor Limited notes that the lack of truly headline-grabbing announcements may leave some uncertain of what the future may hold and that getting clarity on the specific impact is essential for moving forward with confidence.
For tailored support on tax planning, compliance and business strategy, contact Rotherham Taylor Limited at www.rtaccoutants.co.uk.
