Chancellor John Healey will deliver the Autumn Budget on Wednesday 28 October, and it is his first as Chancellor. For business owners, the run-up can be frustrating. There is plenty of commentary, very little certainty, and decisions on hiring, investment and cash flow still have to be made.
Until the Chancellor stands up, much of what you read is speculation. This guide separates what is already confirmed from what is only being discussed, and covers how to keep your funding options open either way.
What we already know
Some of the picture is already settled. The Prime Minister has committed to keeping the main rates of income tax, VAT and employee National Insurance unchanged, which means any revenue raising is likely to come from elsewhere.
On business rates, the government has already confirmed a 20% discount for eligible pubs, social clubs and live music venues in England from April 2027. Hotels, restaurants and cafes are not currently covered by that measure.
What is being discussed
None of the following has been confirmed, but these are the topics business owners are watching.
Employer National Insurance is one. The CBI has called for the threshold at which employers start paying to rise from £5,000 to £6,000, arguing that this would make hiring younger and part-time staff cheaper.
Business rates are another. Wider reform, potentially including Small Business Rates Relief, is expected to feature, although some commentators think any help is more likely to be aimed at specific sectors.
Capital gains tax is the third, and it matters most if you are thinking about selling your business. It is regularly named as a possible source of extra revenue, but it has been reported that the Chancellor is set to reject plans to equalise capital gains and income tax rates. If you are planning an exit, our business valuation and selling a business page is a good starting point, and your accountant can advise on timing.
Why it matters for cash flow and funding
Budget measures often reach a business through cash flow first. Higher payroll costs or a change in rates bills can squeeze working capital, even when profits look healthy.
If you are waiting on customers to pay, invoice finance can release cash tied up in unpaid invoices, so you are not stretching your own bills to cover wages. If you are planning to buy equipment or vehicles, asset finance can spread the cost rather than taking a large amount out of your reserves in one go.
It is also worth knowing that government borrowing costs have risen recently, and lender pricing can shift when that happens. We source and compare finance from a range of lenders, so if you are considering funding in the next few months, speaking to us early gives you more time to look at your options. Terms always depend on your business and the lender.
What to do before Wednesday
You do not need to make big decisions based on rumours. A sensible approach is to review your payroll costs, your planned investment and your exposure to business rates, so you know where you are most sensitive to change. Then speak to your accountant about anything specific to your tax position. Once the Chancellor has spoken, you will be able to act on facts rather than guesses.
What happens next
We will update this article after the Budget with a plain English summary of what has changed for business owners and what it could mean for funding. Check back on Wednesday afternoon.
In the meantime, if you would like to talk through your cash flow or funding plans or book a free consultation with one of our brokers.
This article is general information and does not constitute tax or financial advice. Pinnacle Business Finance is a broker, not a lender, and finance is subject to status and lender criteria.
