Major Announcements From the Budget

Here are the key changes from the Autumn Budget 2025 that business owners should pay close attention to:

• Income Tax Thresholds Frozen for Three More Years - The thresholds that define personal tax bands will remain frozen, meaning that as wages rise with inflation, more people will be pushed into higher tax brackets.

• Business Rates Reforms - The Budget introduces a business rates support package for many properties in retail, hospitality, and leisure - but also revaluation of property values from 2026, which could increase bills for some firms.

• National Minimum Wage Increase - Wage floor increases will raise labour costs for many employers.

• Penalties Under Making Tax Digital (MTD) - Changes in the tax digitisation regime and enforcement could affect administrative burden for small businesses and self-employed.

• Fuel Duty Frozen Until September 2026 - A modest relief for businesses reliant on vehicles or logistics, as fuel costs remain stable for now.

• Cut to Household Energy Bills (Support Measures) - While aimed at consumers, lower energy bills may improve consumer spending - which could benefit retail, hospitality, and service sectors.

• New Tax on Electric Vehicles (EVs) - From 2028, the government will introduce new per-mile charges for EVs - a long-term cost to consider for businesses with EV fleets.

• ISA System Reforms, Tax Increases on Savings & Dividends - Tax changes may affect business owners drawing income from savings or shares, and could influence disposable income and spending in the wider economy.

• State Pension Increase & Social Measures - Increased pension payments may support demand in certain sectors, though offset by broader tax pressures.

• Expansion of Sugar Tax / Health-related Levies & Other “Sin Taxes” - Additional costs for certain sectors (e.g. hospitality, leisure), and possible knock-on effects on consumer spending.

• Consultation on Timely Tax Payments & Compliance Reforms - Increased pressure on businesses to stay compliant and possibly face tougher penalties for late or incorrect filings.

What It Means for EP Finance Clients & Borrowers

As a business finance broker specialising in tailored funding solutions, EP Finance sees several direct implications of this Budget for our clients:

• Tightening Cash Flow for Many Businesses - With wage costs rising and inflation pushing more people into higher tax bands, many firms may feel short-term cash flow pressure. This makes finance planning and liquidity management more critical than ever.

• Business Rates & Overheads Uncertainty - The impending revaluation of business properties may lead to higher business rates for some. Companies should review upcoming cash flow forecasts and potentially explore consolidation or refinancing options to manage future rate increases.

• Increased Demand for Flexible Lending Solutions - With operating costs rising and more unpredictable cash flow, many businesses may look to tailored loan products (e.g. debt consolidation, refinancing, bridging, or asset finance) to manage overheads or support growth.

• Impact on SMEs & High-risk Sectors - Small retail, hospitality, leisure, and service businesses often with tight margins may face sharper financial pressure. These might need working-capital support or consolidation to survive.

At EP Finance, these shifts reinforce the importance of smart, bespoke financial planning and accessible funding solutions.

Five Strategic Actions You Should Consider Now

If you run a business, here’s what you might consider doing in light of the Autumn Budget:

1. Review Your Cash Flow Projections & Budget - Reassess wage, overhead, and tax-related costs for 2026 and beyond.

2. Evaluate Your Debt Structure - If you have multiple credit lines, consider whether consolidating debt could improve liquidity and stability.

3. Plan for Business Rates & Overheads - Estimate how any property revaluation or business-rate changes could affect your future costs.

4. Factor in Cost Increases Before Committing to New Investments - Make allowance for higher wage and tax obligations before expanding, investing, or hiring.

5. Speak to a Financial Advisor Early - Getting ahead with tailored finance solutions (e.g. refinancing, bridging, asset finance) could help manage the impact and protect growth plans.

Final Thoughts

The Autumn Budget 2025 reflects a balancing act seeking to raise revenue, support public services, and maintain economic stability. For many UK businesses, the changes will create headwinds. But with careful planning, smart financial management, and the right funding support, there are still opportunities to stabilise, adapt, and grow.

If you’d like to explore how your business might be affected or how tailored finance solutions could help you weather any short-term strain - contact the team at EP Finance.

References

• Simply Business - Autumn Budget: what it means for your money and your business

• The Guardian - Budget 2025: key points at a glance

• Reuters - Budget 2025: key measures and tax updates

• GOV.UK - Budget 2025 tax support for businesses