The Autumn Budget was announces this week and amongst the various changes, these were the main highlights for SMEs and sole traders: 

  • Firms to pay National Insurance on workers’ earnings above £5,000 from April, down from £9,100 currently, with the rate increasing from 13.8% to 15%. Employment allowance  – which allows companies to reduce their NI liability – to increase from £5,000 to £10,500
  • Minimum wage for over-21s to rise from £11.44 to £12.21 per hour from April. For 18-20 year olds, increase is from £8.60 to £10 per hour
  • Apprentice pay will rise from £6.40 to £7.55 per hour
  • Business Rates: Freeze on the small business multiplier for 2025-26
  • Business Rates: 40% relief for Retail, Hospitality and Leisure (RHL) sectors from 1 April 2025

There were also announcements on various business support programmes, including:

  • Over £1 billion across 2024-25 and 2025-26 for the British Business Bank to enhance access to finance for small businesses, including over £250 million each year for small business loans programmes, including Start Up Loans and the Growth Guarantee Scheme.
  • Commitment to funding for Growth Hubs and the Help to Grow: Management programme in 2025/26.
  • Continuing the UK Shared Prosperity Fund at a reduced level for a further year, providing £900 million; this transitional arrangement will allow local authorities to invest in local growth, in advance of wider funding reforms.

Other important headlines include:

  • The government will deliver a fairer business rates system through permanently lower business rates multipliers for retail, hospitality and leisure (RHL) properties from 2026-27.
  • The Budget also provides £1.9 billion of support to small businesses and the high street in 2025-26 by freezing the small business multiplier and providing 40% relief on bills for RHL properties, up to a £110,000 cash cap.
  • Cutting alcohol duty on draught products from February next year, reducing it by 1 penny per average strength pint. Alcohol duty on non-draught products will increase in line with Retail Price Index (RPI) inflation from the same date.
  •  The government will cap the rate of Corporation Tax at 25%, the lowest in the G7, for the duration of the Parliament.

Find out more about the budgets and the details here.