The Budget landed on 28 October, and the first thing most business owners do is scan it for a line with their name on it. Fair enough. One thing worth knowing straight away: there was no rise in the headline rates of income tax, National Insurance or VAT.
But a Budget isn’t a business plan. Some measures will help you, some won’t touch you, and a few will arrive months from now rather than later this week. Plenty of the measures set out apply only to certain sectors, or only to England, so the first job is working out which announcements apply to your SME, and then, how you can make them work for you.
That’s where a turnaround mindset comes in. It doesn’t have to mean a business in trouble. It can simply mean taking a hard look at the numbers while you’ve still got room to change things before the government rolls out its new measures, requirements, taxes or charges.
Which measures in the budget apply to you?
The big one for any high street business is the news around business rates. From 1 April 2027, qualifying retail, hospitality and leisure properties in England will get 100% relief – up to a rateable value of £18,000. This represents a sizeable increase from the previous £12,000 limit. Tapered relief now runs up to £21,000, another increase, this time from £15,000. The government says that takes a further 70,000 businesses out of rates altogether – and that other properties in those sectors will see bills frozen in real terms.
Two catches. It only covers those sectors, and “frozen in real terms” means bills can still rise with inflation, just not faster.
If you do qualify as a retail, hospitality or leisure business, decide now what these savings could be used for when they come into force. Is that extra cash best spent topping up your working capital buffer, fixing the thing that’s been broken since Spring or paying down short-term borrowing? Any of those proactive measures all beat letting the savings quietly vanish into your monthly spend.
Elsewhere, around 10,000 energy-intensive manufacturers will get a 20–25% electricity discount from April 2027, and the 5p fuel duty cut has been extended to 1 July 2027. If you run a factory or a fleet, that’s worth a look.
Plan for the April minimum wage increase now
From 1 April 2027 the National Living Wage rises by 3.9% to £13.21 an hour, while the rate for 18 to 20-year-olds goes up to £11.27. For someone who works 35 hours per week, that extra 50p works out at about £910 a year. If you employ ten people on or near the minimum wage, you’re looking at roughly £9,100 in extra payroll costs- and that’s before you factor in employer National Insurance and pension contributions which will also go up.
Of course, there is a knock-on effect: once your lowest-paid staff move up, the people just above them expect the gap to hold – and will therefore expect a raise of their own.
April feels a long way off in late October – but it isn’t, if you want choices. Work out the full cost now, then look at rotas, pricing and training while there’s time to change them calmly, rather than squeezing margins in March.
Look for room to improve
Not every business needs a complete overhaul, even when life feels tough and some months leave you in the red rather than the green. Often, getting back on track requires giving serious thought to a handful of unglamorous questions. Which products, services or customers earn you the most after direct costs? Which ones eat time and give little back? Is your pricing keeping pace with your costs?
The Budget also nudges investment. The main first-year allowance goes up from 40% to 50%, while the main writing-down rate falls to 12% from April 2027. In plain terms, more relief up front and less later, so it’s worth raising that with your accountant before you time a big purchase.
An investment that doesn’t pay back is still a bad one, tax incentive or not. Work out the return you need, and how long you can wait for it, before you commit.
Plan beyond the headlines
The Office for Budget Responsibility expects the economy to grow by 1.0% in 2027, with inflation peaking at 3.8% in the first quarter before easing. A steady year, not a boom so, unless you have excellent reasons to believe your business will buck the trend, that’s what you should plan for.
It helps to ask four questions:
- Do you know where your money is going, from cash flow and margins to payment terms and debts?
- Which costs need attention before April?
- What should change in how you earn?
- What would a good 2027 look like, in numbers?
Pick two or three priorities and make them measurable: a stronger cash position, a better margin, lower debt, more predictable revenue. Give each one an owner and a review date. Then actually review it.
None of this is government advice, but they’re sensible habits – and the Budget just so happens to give you a reason to start.
Start 2027 with a clear plan
The Budget is a good moment to take stock. Lasting progress comes from knowing what needs to change and having a plan to make it happen.
If you’d like an independent view of where your business stands, our business turnaround experts are here to help with confidential, impartial guidance. We’ll help you assess your position, set your priorities, deal with debt and head into 2027 with a clearer, calmer and more confident mindset.
