Business: Government Assistance

The Government provided support for small businesses at Autumn Budget by:

• protecting the smallest businesses from the impact of the increase to Employer National Insurance by more than doubling the Employment Allowance to £10,500,
• freezing the small businesses multiplier (used for properties with a rateable value below £51,000) for 2025-26, and extending the retail, hospitality and leisure (RHL) business rates relief for one year at 40% (up to a cash cap of £110,000 per business),
• committing in the Corporate Tax Roadmap to maintain the Small Profits Rate and marginal relief at their current rates and thresholds, as well as maintaining the £1 million Annual Investment Allowance.

At the Spending Review, we have increased the financial capacity of the British Business Bank to £25.6bn, which will enable a two-thirds increase in support for SMEs across the UK.

This Government is supporting rural businesses with substantial investment in farming, nature, transport and digital connectivity. The Government will invest more than £2.7 billion a year in sustainable farming and nature recovery from 2026-27 until 2028-29. The Government has confirmed investment of £1.9 billion over four years into digital connectivity, and £2.3 billion of Local Transport Grant funding for smaller cities, towns and rural areas.

The Government has protected smaller family businesses from BPR changes, providing a very significant level of relief with the first £1 million of business assets continuing to receive 100% relief and then 50% thereafter.