The Chancellor framed the Autumn Budget as a step towards stability. For many advisers working with entrepreneurs, investors, and family businesses, it looks more like a recalibration of who pays for that stability — and a clear message that business owners will be asked to do more of the heavy lifting.
Gemma Broadbent, partner and head of corporate at Goughs Solicitors, captures the mood pretty accurately. “You may have thought Panto season had come early with today’s Budget – plenty of noise, finger-pointing, and theatrics. But how much real substance was there, and what does it mean for businesses?”
Her concern is not just the headline tax take, but where the burden falls. “We’ve just seen a Budget containing £26bn of tax rises alongside confirmation that growth forecasts have been reduced. The tax burden is set to reach a record 38% of GDP. The Chancellor will be hoping that these reforms, combined with the increased fiscal headroom she has created, reduce the need for another Budget of this scale in the future.
“However, further increases in employer costs and the halving of CGT relief for business owners selling to employee ownership trusts reinforce the sense that Government support for UK SMEs is continuing to erode.”
That erosion is felt most keenly where long-term ownership and succession are in play. “For business owners considering succession or employee-led ownership, the reduction of CGT relief fundamentally changes the attractiveness and affordability of passing a business on to its workforce,” Broadbent says. “What was previously a highly effective and culturally positive route for succession planning is now significantly less tax-efficient, making it harder for SMEs to transition ownership in a way that protects jobs, local communities, and long-term stability.”
“Taken together, these measures send a message that smaller and mid-sized businesses, which form the backbone of the UK economy, are being asked to shoulder a disproportionate share of the fiscal tightening.”
Tax advisers see the same pattern when they look at the detail. Martin Bridle, partner at Pearson May Accountants, describes a broad-based tightening focused on those seen as better able to pay. “The Budget included a significant number of tax rises targeting those deemed to be wealthy, high earners, and business owners. The cumulative impact of these measures will be felt across income tax, capital gains, property-related reliefs, and employer obligations. For many clients, this represents a meaningful shift in the tax landscape and a clear signal that the Government intends to rely more heavily on higher earners and business activity to close the fiscal gap.”
Lucy Mangan, head of tax at Menzies LLP, points to the tension between the Budget’s stated aim and its practical impact. “This Budget was billed as a move towards stability, yet it introduces another wave of costs and complexities with no real reform. Businesses are now left with a patchwork of measures rather than a clear growth strategy, with pressure placed on the very businesses that the Government relies on to close the fiscal gap.”
She highlights changes that reach beyond boardrooms to investors and landlords. “Raising tax rates on dividends, savings, and rental income effectively introduces an additional 2% NIC onto these categories, and weakens incentives to invest and scale. Notably, this 2% uplift does not apply to the additional dividend rate, suggesting an intention to offer some relief to entrepreneurs and SMEs. Add in sin taxes on gambling and milkshakes which deliver little economic value, but pull more products and services into the system, push prices up higher and add administrative burden to an already crowded tax landscape.”
For owner-managers and investors, the direction of travel is towards higher taxation, but not necessarily overnight. As Bridle notes, “the good news is that several of the most impactful changes, including those relating to ‘salary sacrifice’ pension contributions and other adjustments to income-planning strategies, are scheduled to be introduced at future dates. This provides a valuable window for clients to understand how the rules will evolve and to take action in advance.”
“With the right planning, there may be opportunities to restructure remuneration, accelerate or defer income, optimise pension contributions, or rethink how profits and investments are extracted from a business,” he says. “In short, while the direction of travel is clearly towards higher taxation, clients do have time on their side, provided they seek advice promptly and use this period to prepare effectively for the changes ahead.”
The Budget is not without targeted support. Broadbent welcomes a more constructive note on skills and succession in specific sectors. “There was, at least, a sprinkling of positive news: £725m of support for apprenticeships, including fully funded SME apprenticeships for eligible young people. This is welcome for sectors struggling with recruitment and skills gaps.”
She also sees a subtle shift on agricultural and business property relief that could matter for farming families and rural enterprises. “We also saw what could be interpreted as a small U-turn on agricultural and business property relief. It was easy to miss, but from April 2026, any unused portion of the 100% relief will become transferable between spouses and civil partners. While this alone won’t restore the trust lost between the farming community and the Government, it does provide meaningful planning opportunities.
“For farming families facing rising costs, succession challenges, and uncertainty over future policy direction, this change at least offers a glimmer of stability and an additional tool to help protect the long-term viability of their businesses.”
Across law and accountancy, one recommendation is repeated: do not wait. “Talking to your professional advisers is the most valuable piece of advice I can give” Broadbent asks. “Do not bury your head in the sand; this isn’t going to go away. Your legal and financial advisers can undertake a full review of your business and personal interests and work with you on a plan of options available based on your desired outcome(s) and timescales.”
In a Budget sold as steadying the ship, the fiscal waters have become choppier, and those navigating them will need advice, planning, and a close eye on the next wave of change.
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