Businesses have been heavily impacted by this Budget, with several key changes being introduced, adding to their tax and operational costs.
The rise in employers’ National Insurance Contributions (NICs) will impact employers significantly, particularly small businesses. 
Employers’ NIC increases by 1.2% to 15% from April 2025. And the threshold at which it becomes payable is decreased to £5,000 from £9,100.
This is a steep increase in costs for employers on top of the National Minimum Wage rise from April 2025 and the new employment regulations.
While business rates are likely to rise, the existing 40% relief on business rates for the retail, hospitality and leisure industries will continue in 2025/26, up to a cap of £110,000 per business.
A proper reform of the current business rates system is well overdue, with a much fairer framework that promotes investment and addresses the issue of vacant properties. We continue to await this kind of transformation.
Labour’s much-anticipated business tax roadmap has been published to provide a degree of certainty and stability on taxation plans for the next five years.
The Chancellor announced that Inheritance Tax (IHT) business relief will be restricted in future (providing only a 50% relief over a £1m threshold), which will create a significant cashflow challenge for family businesses looking to succession planning.
Confirmation that the Corporation Tax rate will remain capped at 25% is welcome, as well as continued full expensing and the Annual Investment Allowance for capital expenditure. This move provides businesses with tax relief certainty.
