Autumn Budget 2026: Does the Government Really Understand Small Businesses?

One of the most anticipated Budgets in recent years was delivered today by the Chancellor, and like many business owners, I was interested to hear what the Government had planned for the future of our economy, particularly for small businesses.

The Chancellor opened by describing it as a Budget for the working people of Britain, promising a new direction, a clearer future and some much-needed breathing space.

Breathing space sounds lovely. I think most small business owners would settle for five minutes without another bill landing in their inbox!

But as I listened to the announcements, I found myself asking a fairly simple question.

Does the Government actually consider small business owners to be working people?

Because from where I’m sitting, running my own accountancy practice and working with small businesses every day, there didn’t seem to be an awful lot of encouragement for the people taking the risks, creating jobs and trying to build successful businesses.

Growth, borrowing and the bigger picture

The Chancellor spoke about the global economic storms facing the UK, the importance of reducing public borrowing and creating a stronger economy over the next three years.

I don’t disagree with the need for financial stability. In fact, as an accountant, I’d be rather concerned if I did!

But economic growth and business growth aren’t necessarily the same thing.

A business owner running a small limited company doesn’t measure success by how the UK compares with other G7 countries. They’re looking at their bank balance, their profit margins, their next VAT payment and whether they can afford to employ another member of staff.

It’s all very well telling us the economy is heading in the right direction, but that needs to translate into something meaningful for the businesses doing the everyday work.

A little help, but who actually benefits?

There were some welcome measures.

The increase in tax-free mileage rates is one of them. The rate of 55p per mile for the first 10,000 business miles is being made permanent, while the rate above 10,000 miles is increasing from 25p to 35p.

For self-employed people and employees using their own vehicles for business, that’s useful. Particularly for tradespeople, consultants and others who spend a considerable amount of time traveling.

The proposed extension of parental financial support to eligible self-employed fathers and partners is also welcome. Running your own business shouldn’t mean having to choose between earning a living and spending those important early weeks with your family.

And additional business rates support for smaller high-street premises could make a genuine difference to independent retailers, cafés and other local businesses.

These are positive steps, and they deserve recognition.

But are they enough?

Energy bills – what about the little businesses?

One announcement that caught my attention was the promise of electricity bill reductions of up to 25% for eligible businesses from April 2027.

It sounds fantastic, until you look at who qualifies.

The British Industrial Competitiveness Scheme is designed primarily for certain manufacturing and energy-intensive industries.

I’m pleased those businesses are receiving support, but what about the independent café, the small workshop, the local retailer or the business employing four people in a little industrial unit?

Their energy bills matter too.

If the Government genuinely wants thriving high streets and successful small businesses, surely more consideration needs to be given to the everyday running costs that affect them.

Employing people is becoming an expensive decision

The Chancellor also announced increases to the National Minimum Wage and National Living Wage.

I absolutely support people receiving a fair wage for their work. People should be able to earn a decent living.

But there’s another side to this conversation.

For a small business employing five or six people, even a relatively modest percentage increase can add thousands of pounds to the annual wage bill once employer National Insurance and pension costs are considered.

That money has to come from somewhere.

Businesses may have to increase their prices, accept smaller profits, reduce working hours or postpone taking on another employee.

And what about younger people looking for their first opportunity?

I’d have liked to see more meaningful incentives for smaller employers to take on and train young people. Helping someone into their first job can change their future, but businesses need the confidence and financial ability to offer those opportunities.

Encouraging enterprise – but where’s the real incentive?

There were announcements aimed at encouraging entrepreneurship, including changes to the trading allowance and measures intended to support business founders.

That’s encouraging, particularly for people testing a business idea alongside their existing employment.

But I would have liked the Chancellor to go further.

What about someone who wants to leave employment and start their own business?

They might have a fantastic idea, years of experience and the determination to make it work. What they often don’t have is the financial security to survive those difficult first months.

Yes, there are existing start-up loans, mentoring programmes and business support initiatives. But taking on a loan isn’t quite the same as receiving financial support. The repayments still have to be made, whether the business is profitable or not.

I’d have welcomed more practical help with start-up costs, early employment and investment in growing businesses.

We talk endlessly about encouraging enterprise in this country, but we also need to make it realistic for ordinary people to take that first step.

HMRC and the small business owner

Another area receiving attention is HMRC, with further resources and powers aimed at collecting outstanding tax.

I fully support tackling deliberate tax avoidance and ensuring everyone pays what they owe.

But I hope some of that investment also goes towards making HMRC easier to deal with.

Small business owners need clear guidance, timely responses and a tax system they can understand.

As accountants, we spend a considerable amount of time helping clients navigate that system. It would be refreshing to see as much enthusiasm for improving HMRC’s service as there is for collecting the money.

So, was this really a Budget for working people?

I appreciate the Government has difficult decisions to make. Public finances need managing, services need funding and we can’t simply spend money that isn’t there.

But I can’t help feeling that this was a missed opportunity.

Small business owners are working people too.

They’re the electricians, café owners, shopkeepers, consultants, designers and company directors who put their own money, time and often their family’s financial security on the line.

They’re the people who employ locally, support their communities and frequently work far more hours than they’d ever admit.

They don’t necessarily want handouts. They want a fair opportunity to succeed.

I would have liked to see a Budget that made it easier to start a business, more affordable to employ people and more attractive to invest in growth.

Instead, I came away feeling that the Government still has some way to go in understanding what life is really like for the country’s smaller businesses.

You can’t keep talking about economic growth without properly supporting the people who are expected to deliver it.

One announcement that really matters to me

I do want to finish on something positive, and something that is personally very important to me.

The Government has committed a further £432 million towards its programme to tackle rough sleeping, with the ambition of ensuring that everyone sleeping rough in England is offered a route off the streets by Christmas.

This is something close to my heart.

Whatever our views on taxation, public spending or the direction of the economy, I think we can agree that nobody should have to sleep on the streets, particularly during the winter months.

Of course, announcing funding and delivering meaningful change are two very different things. What matters now is that this money reaches the people who need it and provides lasting support, not just somewhere warm for a few nights.

But if this commitment helps people find safety, stability and an opportunity to rebuild their lives, then it’s an announcement I genuinely welcome.

And perhaps that’s where I’ll leave my thoughts on today’s Budget.

There’s plenty I would have liked to see done differently for small businesses, but there are also things worth recognising.

For me, a successful Budget shouldn’t just be about balancing the country’s books. It should be about improving people’s lives and giving those who want to work, build businesses and create opportunities a fair chance to do so.

That’s something I hope future Budgets will take a little more seriously.

Glenn’s Notebook – Business life and everything in between.