What does the Budget mean to Business in Bucks

Buckinghamshire Business First have been filtering through and analysing yesterday's budget. What are the main issues and developments for small business?

Here's everything small business owners in Buckinghamshire need to know about the announcements in the budget. While these changes present both challenges and opportunities, small businesses in Buckinghamshire will need to adapt their strategies to navigate the new financial landscape effectively.

Employers' National Insurance

· From April 2025, Employers' National Insurance contributions will increase by 1.2 percentage points to 15%.

· The secondary threshold, the point at which employers start paying National Insurance on a worker's salary, will be cut from £9,100 a year to £5,000.

Business Asset Disposal Relief

· Business Asset Disposal Relief (BADR), the Capital Gains Tax relief entrepreneurs get when they sell their business, will increase from 10% to 14% in 2025 and then to 18% in 2026.

· The higher rate of Capital Gains Tax (CGT) will rise from 18% to 24%. CGT on the sale of residential property will also increase from 18% to 24%.

Employment Allowance

· The Employment Allowance will increase from £5,000 to £10,500, which means 865,000 small businesses won't pay National Insurance.

Corporation Tax

· The government has published a Corporation Tax 'roadmap' which sets out the government's plans. The main commitments include:

o Capping the headline rate of Corporation Tax at 25% for the duration of parliament.

o Retaining the small profits rate and marginal relief at current rates and thresholds.

o Maintaining the capital allowances system, including permanent full expensing and the £1m annual investment allowance.

o Maintaining the generosity of R&D reliefs.

o Working collaboratively with companies on simplification and improving user experience, including HMRC's path forward on digitisation.

o Developing a new process for increasing the tax certainty available in advance for major investments.

HM Revenue & Customs (HMRC) Reform

· The government is investing in improving HMRC's customer services, including answering 85% of phone calls where customers want to speak to an advisor.

· HMRC will be transformed into a digital-first organisation, with a "digital transformation roadmap" to be published in spring 20251

· The government is also investing to enable the modernisation and reform of HMRC, improving the productivity and resilience of HMRC's internal systems and improvements to the way customers engage with HMRC, including through the HMRC App.

Tax Thresholds

· From April 2028, personal tax thresholds, which are the point at which people pay tax, will increase in line with inflation.

Alcohol Duty

· Alcohol duty on draught products will be reduced from February 2025, with a cut of 1 penny per average strength pint1. Alcohol duty on non-draught products will increase in line with the retail price index (RPI) inflation from the same date.

· Mandatory duty stamps for spirits will be removed and investment will be increased for spirits producers in the Spirit Drinks Verification Scheme, which allows producers to verify the geographic origin of their products.

Business Rates

· From 2026-27, the government will introduce "permanently lower" business rates for retail, hospitality, and leisure (RHL) properties in England1. This change will be funded sustainably by introducing a higher multiplier for the most valuable properties, including distribution warehouses used by online giants.

· For 2025-26, 250,000 RHL properties will receive 40% relief on their bills, up to a cash cap of £110,000 per business1. The relief is currently 75%.

· For 2025-26, the small business multiplier will be frozen.

Fuel Duty

· Fuel duty will be frozen this year and in 2025, with the temporary 5p cut retained. This will save the average car driver £59 in 2025-26.

Vaping Products Duty

· A flat-rate excise duty on all vaping liquid will be introduced from 1 October 2026 at £2.20 per 10ml vaping liquid, accompanied by an equivalent one-off increase of £2.20 per 100

cigarettes/50g of tobacco in tobacco duty to "maintain the financial incentive to switch from tobacco to vaping".

Minimum Wage

· From April 2025, the minimum wage for employees aged 21 and over will increase by 6.7% to £12.21 an hour, equivalent to £1,400 a year for a full-time worker.

· Minimum wage for workers aged 18 to 20 will rise by 16.3% to £10 an hour.

Late Payment

· To help small businesses deal with late payment of invoices, from 1 October 2025, companies bidding for government contracts over £5m per annum will be excluded from the procurement process if they do not pay their own suppliers within an average of 45 days.

Small Business Funding Schemes Including Start Up Loans

· More than £1bn in 2024-25 and 2025-26 will be provided to the British Business Bank to "enhance access to finance for small businesses", including over £250m each year for Start Up Loans and the Growth Guarantee Scheme.

Made Smarter Adoption Programme

· Funding will double to £16m in 2025-26 and be extended to all nine English regions. The scheme supports small manufacturing businesses to adopt advanced digital technologies.

Shared Prosperity Fund

· The UK Shared Prosperity Fund, the government's community and regeneration fund, will be extended but at a reduced level of £900m for another year. It was due to end in April 2025. This transitional arrangement will allow local authorities to invest in local growth, in advance of wider funding reforms.

Help to Grow and Growth Hub in England

· The government's Help to Grow: Management course and Growth Hubs in England will continue to be funded in 2025-26.

Small Business Strategy Command Paper

· The government will publish a "Small Business Strategy Command Paper" next year, setting out "the government's vision for support for small businesses". The strategy will cover areas including "boosting scale-ups, growing the cooperative economy, creating thriving high streets, making it easier to access finance, opening up overseas and domestic markets, building business capabilities, and providing a strong business environment".

Businesses in Buckinghamshire can access free business support from Buckinghamshire Business First. Call 01494 927130, email businessupport@bbf.uk.com or visit www.bbf.uk.com