Despite being highly anticipated, the 2026 Autumn Budget’s lack of significant reforms could cause some businesses to miss key changes that impact them, leading Weybridge accountancy firm MGI Midgley Snelling LLP cautions.
Establishing breathing room for businesses and individuals was the order of the day, with the notion being emphatically repeated at nearly every opportunity by Chancellor John Healey and this manifested in a range of small changes without the expected major upheavals.
Unlike with the 2026 Spring Statement, the impact of the Iran War on the economy was addressed directly and was the target of a range of adjustments, though it swiftly became apparent that some were set to benefit more from the Budget than others.
Sarah Squires, Partner at MGI Midgley Snelling LLP, said: “It is difficult to be all things for all people, but there are quite a few business leaders who would have appreciated more, or any, consideration in this year’s Autumn Budget.
“There was a commendable effort to get the economy moving by encouraging more entrepreneurship, but there is limited value in a measure that is a boon for innovation but neglectful of established businesses.”
For the 70,000 businesses impacted by the change, the increased threshold for Business Rates to £18,000 will be welcomed, as they will no longer face payments that may have eaten into profit margins.
Business Rates have been frozen for two years for retail, hospitality, and leisure businesses above the threshold, though it remains to be seen whether this softens the blow of increased costs that such businesses face.
Chief among concerns is likely to be employment expenses and the announcement of a further increase to the National Minimum Wage (NMW) and the National Living Wage (NLW) that could increase pressures more broadly.
“While most people associate NLW increases with workers earning that amount, it may be businesses that hire graduates that feel the strain more.
“The Autumn Budget included a few measures to make life easier for small businesses, but professional firms do not seem to have been given the same treatment even as they face a greater pressure to adjust wages.”
The concern around employment costs comes as the updated NLW of £13.20 an hour means workers over 21 will earn £25,740 annually for working 37.5 hours or £27,456 for working 40 hours.
Graduates and skilled workers will likely have noticed that their own wages are barely above that amount, if at all, as the median salary for a graduate 15 months after university is only £28,500.
A compression in the gap between graduate salaries and NLW will see employees requesting better compensation in order to preserve the equitability of pay bands in the workplace or resign from their skilled positions to earn a similar amount in potentially less taxing jobs.
“Provided businesses can afford to employ them, young people were the group that seemed to benefit the most from the Autumn Budget, as there seems to be a real push to embrace the future of the economy by addressing the concerns of an increasingly disillusioned generation.
“Savers will be happy to see the proposed limit to Cash ISAs scrapped, preserving the standard £20,000 allowance for all ages, while the introduction and adjustments of other ISAs are designed to help first-time investors and first-time buyers.
“For the next generation of business owners, the Chancellor was keen to clear some of the roadblocks that stop people from letting their entrepreneurial spirit shine.”
To reward those who want to get a business off the ground, a new Capital Gains Tax Founders’ Relief was introduced and the generosity of the Trading Allowance was tripled.
There were some measures that could help a wider range of businesses, including an abolition of gas standing charges by the end of 2027 and an extension of the 5p fuel duty cut and freeze, now remaining in place until 1 July 2027.
“Something that could be exciting for our clients is the move towards a devolved approach to investment and obligations,” Sarah said. “We know how the unique circumstances faced by businesses in Weybridge can sometimes be made more difficult by a broad approach that overlooks what they need to grow.
“We want to help the businesses that are the backbone of Weybridge’s economy make the most of any opportunity that comes their way.
“Perhaps more importantly, we can also advise on how different regions may be subject to varied rules and reliefs, something that is vital for businesses to know when operating across the UK.”
Time will tell whether the Chancellor’s attempts to restore the economic optimism laid out in the 2026 Spring Statement through a series of tweaks instead of significant changes are successful, but MGI Midgley Snelling LLP advise businesses and individuals to consider their future.
“The Chancellor lined up a number of measures for the next Spending Review that we will unpack once details are revealed in the spring,” said Sarah. “Until then, getting expert accounting support is the best way to make sure all of the changes that impact you are firmly on your radar.”
MGI Midgley Snelling LLP advise that tailored advice enables individuals and businesses to understand how the Autumn Budget uniquely impacts them and allows them greater control of their future.
For personalised advice on tax planning, compliance and business strategy, contact MGI Midgley Snelling LLP at www.midsnell.co.uk.
