While we may not be able to anticipate each and every way that the November budget will affect SME owners, we can certainly sum up some of the bigger points. Read on for a recap…

UK Government November Budget Changes

• Potential Tax Support For Entrepreneurs

A consultation has been launched on the development of support for entrepreneurs with the aim of making tax more ‘founder-friendly’. It will analyse incentives and the tax system for founders and scaling firms with the intention of encouraging companies to ‘start, scale and stay in the UK’.

 

• Funding For Small Businesses

The budget makes reference to the British Business Bank’s new five-year plan. It discusses changing support for small businesses and scaling businesses, investing up to £25 billion pounds to do so. 

 

• Regional Business Support

Greater Manchester, West Midlands, West Yorkshire, South Yorkshire, Liverpool City Region, the North East, and Greater London will receive a combined total of £13 billion via their Mayoral Strategic Authorities to invest in upskilling, business support, and infrastructure. 

 

• Apprenticeship Funding 

The cost of training for apprentices aged under 25 will be made free for small businesses from 2026. This initiative is a part of the new Youth Guarantee programme, backed by an additional £820 million a year, designed to improve employment for young people by providing additional placements and upskilling opportunities. 

 

• Expansion Of Investor Tax Reliefs

The Venture Capital Trust and the Enterprise Investment Scheme company investment limit will be increased to £10 million. The limit will be increased to £20 million for Knowledge Intensive Companies as well as increasing the lifetime company investment limit to £24 million, and £40 million for KICs. The VCT income tax relief will decrease to 20%.

 

• Business Rates Reform

Permanently lower business rates will be brought in for thousands of smaller businesses in retail, leisure, and hospitality. The idea is to implement a higher tax on properties with a value of £500,000 or more. However, a £3.2 billion Transitional Relief scheme will be implemented for the largest rate payers and a scheme will be introduced to assist businesses just crossing the £500 million valuation threshold.

 

• National Living Wage Increase

It was previously announced that there would be an increase in the minimum living wage. The UK Living Wage is going to increase to £12.71 per hour.

 

• Pension Contributions Taxed

From April 2029, the amount exempt from National Insurance contributions will be capped at £2,000. Any amount above this number will be taxed from then. 

 

• Income Tax Frozen

Income tax thresholds have been frozen until 2030-31. The income tax personal allowance, higher-rate threshold, and additional-rate threshold are frozen at £12,570, £50,270 and £125,140 respectively. 

 

• Electric Vehicle Tax Introduction

A new mileage-based tax for electric vehicles and plug-in hybrid cars will be implemented from 2028. It will be approximately half the fuel duty rate paid by drivers of petrol cars. 

 

• Tax Compliance

Different measures are being put in place to tackle non-compliance with tax. This includes £25 million over the next five years to recruit additional Insolvency Service staff and an amendment to the law to extend the circumstances within which directors who break the law may be disqualified. 

 

There is also discussion of the introduction of new measures to target tax evasion committed by small businesses on the high street, with a new dedicated team of criminal investigators being deployed. 

What Does The UK November Budget Mean For Small Businesses? 

This certainly is not a full summary of the entirety of the budget. You can read straight from the source on the GOV.UK website here. If you’re looking to launch or scale your business in the coming years, taking these changes into account is a must. 

 

It remains to be seen exactly what impact this will have on SMEs and the wider economy. Whilst we will see some changes sooner than others, we likely won’t know the true results for years to come. 

 

For a budget that was long-feared, how do you feel now it’s arrived? 

 

If you are looking to scale your B2B business, consider joining us at The Business Show 2026. Taking place over two days, the 11th and 12th of November 2026, at London Excel, the show attracts 25,000 SME owners looking for solutions and services that improve their daily lives and solve problems. It’s the perfect place to generate business in slower months, connect with high-quality leads from businesses that buy, and improve your brand visibility, associating your name with the UK’s largest business event and creating exposure for your brand. Find out more about exhibiting here and discover the ways in which The Business Show can benefit you.