Rather than the portent of doom that many were expecting, the chancellor’s 2025 budget went by with relatively little in the way of controversy.
This of course will be welcome news for the UK’s small-to-medium-sized businesses, which took a bit of a hit in 2024’s announcement. But while the bruising budget that some feared never really materialised, there are still a handful of key points that SMEs should be aware of.
Another increase of minimum wage
Announced the day before the unveiling of the rest of the budget, this is the change which could have the most impact on UK SMEs.
While there’s little doubt that wages had been lagging behind inflation for some time, the rise couldn’t have come at a worse moment for the hospitality sector.
The entire sector, which has been struggling for years, has looked to each budget announcement for glimmers of hope that unfortunately haven’t appeared for them. Again, this year’s budget has seen them fare little better.
For an industry built around millions of workers on minimum wage, this rise (hot on the heels of last year’s) has the potential to seriously rock many restaurants, pubs, and hotels.
Apprentices and those aged 16-17 will see a 55p hike to £8 per hour.
18-20-year-olds’ wages will jump 85p to £10.85
Those 21 and over will receive £12.71, an increase of 50p
Business rate reform
The chancellor mentioned that she plans for permanently lower tax rates to be introduced for over 750,000 leisure, retail, and hospitality properties during the 2026/27 tax year.
To fund this, Reeves is looking to implement a higher multiplier on properties valued over £500k.
Even for SMEs, this could affect those that require larger properties, while smaller premises based in London could also find themselves on the wrong side of this multiplier.
Training apprentices
Reeves announced that training for apprenticeships will be fully funded for all small-to-medium-sized businesses. The only stipulation on this being an age cap of 25 on the apprentices.
This could prove to be an unheralded boon for small companies that tend to take on lots of apprentices, such as trade-based businesses. With extra funding, companies may provide more opportunities for young people, eventually providing the UK with an increased number of tradespeople.
“Greater freedom” for pubs and late-night venues
Reeves made a fleeting comment about providing “greater freedoms” to pubs and late-night venues.
What this might entail is up for debate, but the suggestion is that local councils will be encouraged to allow such businesses more leeway with contentious issues such as opening hours.
Worried about any of the changes?
If you’re concerned that these changes may make it difficult for your business to remain viable, it’s crucial that you take action now rather than waiting until April. We offer free consultations to business owners that can provide you with a solid strategies that ensure your business is ready for incoming changes.
With a range of solutions aimed at making life easier for business owners, Forbes Burton can help you to successfully navigate any difficulties. Get in touch for a free consultation today to see how we can help. Call us on 0800 060 8508, or email advice@forbesburton.com for your free consultation with no obligation.
