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SME Insights is our monthly briefing for UK small business owners: what’s changing in the economy, what we’re seeing on Enterprise League, and one practical move for the month ahead. This edition covers the Budget delivered by Chancellor John Healey on Wednesday 28 October 2026.<\/p>\n
In one sentence: no rises to the headline rates of income tax, National Insurance or VAT, some real help on business rates for high-street businesses in England, and higher wage costs from April 2027, against a forecast of slower growth and higher inflation next year.<\/p>\n
<\/p>\n
<\/p>\n
<\/p>\n
From 1 April 2027 the National Living Wage rises 3.9% to \u00a313.21 an hour. The rate for 18\u201320-year-olds rises to \u00a311.27, and for 16\u201317-year-olds and eligible apprentices to \u00a38.31.<\/p>\n
<\/p>\n
Employer National Insurance stays at 15%, with the Employment Allowance at \u00a310,500. The VAT registration threshold stays at \u00a390,000. Corporation Tax stays at 25%, with the 19% small profits rate.<\/p>\n
<\/p>\n
<\/p>\n
The Trading Allowance triples from \u00a31,000 to \u00a33,000 from 6 April 2027. Anyone joining Making Tax Digital for Income Tax in April 2027 won’t get penalty points for late submission of their first four quarterly updates.<\/p>\n
<\/p>\n
The British Business Bank gets \u00a35 billion of extra capacity, including \u00a31.4 billion for equity funds and a new \u00a3450 million debt product aimed at growth-stage companies. The government also promises to make it simpler for small businesses to bid for public contracts, with a new “UK supplier” definition due by January 2027.<\/p>\n
<\/p>\n
There’s no new measure on late payment beyond a commitment to tackle it. There’s also no general help with energy bills: the electricity discount of up to 25% applies to about 10,000 energy-intensive manufacturers only. The British Chambers of Commerce<\/a>\u00a0called that “disappointing”. The Federation of Small Businesses said small firms “got nothing to ease sky-high energy bills and nothing to make hiring someone more affordable”, while welcoming the higher Trading Allowance (SME Magazine<\/a>).<\/p>\n <\/p>\n The forecast. The Office for Budget Responsibility<\/a>\u00a0expects growth of about 1.2% this year and 1.0% in 2027. It expects inflation to peak at around 3\u00be% in early 2027 before returning to the 2% target in 2028. It forecasts flat business investment this year and a small fall in 2027, as higher energy prices weigh on firms. It also notes that many businesses have absorbed rises in employer National Insurance and energy costs “into lower profits”.<\/p>\n What it means. For most small businesses, 2027 looks like a year of rising costs and modest demand. The Budget takes some of the pressure off high-street businesses in England. For everyone else, the cost side of the plan matters more than ever.<\/p>\n <\/p>\n From next month, this section will include trends from our own data: which sectors buyers are searching most, and where new companies are joining.<\/p>\n <\/p>\n Most of these changes start in April 2027, which gives you five months. Four conversations worth having with your accountant before then:<\/p>\n This is general information, not tax advice. Your accountant can tell you what applies to your business.<\/p>\n <\/p>\n <\/p>\n <\/p>\n The main changes are wider Small Business Rates Relief for retail, hospitality and leisure in England (full relief up to \u00a318,000 rateable value from 1 April 2027), a 3.9% rise in the National Living Wage to \u00a313.21 from 1 April 2027, a higher first-year capital allowance (50% from 1 January 2027), a tripled Trading Allowance (\u00a33,000) and a new Founders’ Relief. Employer National Insurance, the VAT threshold and Corporation Tax rates did not change.<\/p>\n Under the proposals in the government’s technical consultation<\/a>, an individual must have held at least 25% of the company when its trade (or preparation for it) started, held the shares for at least five years, and been UK resident for at least five tax years before the sale. The company must have had turnover of at least \u00a310 million and at least 15 qualifying full-time employees in the accounting period before the sale, and pass two of three tests: 25% average annual turnover growth over three years, 25% average annual headcount growth over three years, or at least \u00a31.5 million of R&D on which R&D tax relief was claimed. The relief applies to disposals from 6 April 2027. These are proposals and may change: the consultation closes on 30 November 2026.<\/p>\n No. It stays at \u00a390,000.<\/p>\n On 1 April 2027, at \u00a313.21 an hour for workers aged 21 and over. The rate for 18\u201320-year-olds rises to \u00a311.27, and for 16\u201317-year-olds and eligible apprentices to \u00a38.31.<\/p>\n No. The business rates measures in this Budget apply to England. Business rates are devolved in Scotland, Wales and Northern Ireland.<\/p>\n SME Insights is published monthly on our LinkedIn page<\/a>\u00a0and here on the blog. If your company is listed on Enterprise League, make sure your profile is up to date before the new year: claim or update your free company profile<\/a>.<\/p>\n <\/p>\n Enterprise League figures: enterpriseleague.com and enterpriseleague.com\/business-awards, October 2026.<\/p>\n <\/p>\n <\/p>\n [\/et_pb_text][\/et_pb_column][\/et_pb_row][\/et_pb_section]<\/p>\n","protected":false},"excerpt":{"rendered":" SME Insights is our monthly briefing for UK small business owners: what’s changing in the economy, what we’re seeing on Enterprise League, and one practical move for the month ahead. This edition covers the Budget delivered by Chancellor John Healey on Wednesday 28 October 2026. In one sentence: no rises to the headline rates […]<\/p>\n","protected":false},"author":1,"featured_media":75871,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_et_pb_use_builder":"on","_et_pb_old_content":" \u00a0<\/p> \u00a0<\/p> \u00a0<\/p> SME Insights is our monthly briefing for UK small business owners: what's changing in the economy, what we're seeing on Enterprise League, and one practical move for the month ahead. This edition covers the Budget delivered by Chancellor John Healey on Wednesday 28 October 2026.<\/p> \u00a0<\/p> In one sentence: no rises to the headline rates of income tax, National Insurance or VAT, some real help on business rates for high-street businesses in England, and higher wage costs from April 2027, against a forecast of slower growth and higher inflation next year.<\/p> \u00a0<\/p> \u00a0<\/p> \u00a0<\/p> \u00a0<\/p> \u00a0<\/p> \u00a0<\/p> \u00a0<\/p> \u00a0<\/p> \u00a0<\/p> \u00a0<\/p> \u00a0<\/p> \u00a0<\/p> \u00a0<\/p> From 1 April 2027 the National Living Wage rises 3.9% to \u00a313.21 an hour. The rate for 18\u201320-year-olds rises to \u00a311.27, and for 16\u201317-year-olds and eligible apprentices to \u00a38.31.<\/p> \u00a0<\/p> \u00a0<\/p> \u00a0<\/p> \u00a0<\/p> Employer National Insurance stays at 15%, with the Employment Allowance at \u00a310,500. The VAT registration threshold stays at \u00a390,000. Corporation Tax stays at 25%, with the 19% small profits rate.<\/p> \u00a0<\/p> \u00a0<\/p> \u00a0<\/p> \u00a0<\/p> \u00a0<\/p> \u00a0<\/p> \u00a0<\/p> The Trading Allowance triples from \u00a31,000 to \u00a33,000 from 6 April 2027. Anyone joining Making Tax Digital for Income Tax in April 2027 won't get penalty points for late submission of their first four quarterly updates.<\/p> \u00a0<\/p> \u00a0<\/p> \u00a0<\/p> \u00a0<\/p> The British Business Bank gets \u00a35 billion of extra capacity, including \u00a31.4 billion for equity funds and a new \u00a3450 million debt product aimed at growth-stage companies. The government also promises to make it simpler for small businesses to bid for public contracts, with a new \"UK supplier\" definition due by January 2027.<\/p> \u00a0<\/p> \u00a0<\/p> \u00a0<\/p> \u00a0<\/p> There's no new measure on late payment beyond a commitment to tackle it. There's also no general help with energy bills: the electricity discount of up to 25% applies to about 10,000 energy-intensive manufacturers only. The British Chambers of Commerce<\/a>\u00a0called that \"disappointing\". The Federation of Small Businesses said small firms \"got nothing to ease sky-high energy bills and nothing to make hiring someone more affordable\", while welcoming the higher Trading Allowance (SME Magazine<\/a>).<\/p> \u00a0<\/p> \u00a0<\/p> \u00a0<\/p> \u00a0<\/p> The forecast. The Office for Budget Responsibility<\/a>\u00a0expects growth of about 1.2% this year and 1.0% in 2027. It expects inflation to peak at around 3\u00be% in early 2027 before returning to the 2% target in 2028. It forecasts flat business investment this year and a small fall in 2027, as higher energy prices weigh on firms. It also notes that many businesses have absorbed rises in employer National Insurance and energy costs \"into lower profits\".<\/p> \u00a0<\/p> What it means. For most small businesses, 2027 looks like a year of rising costs and modest demand. The Budget takes some of the pressure off high-street businesses in England. For everyone else, the cost side of the plan matters more than ever.<\/p> \u00a0<\/p> \u00a0<\/p> \u00a0<\/p> \u00a0<\/p> From next month, this section will include trends from our own data: which sectors buyers are searching most, and where new companies are joining.<\/p> \u00a0<\/p> \u00a0<\/p> \u00a0<\/p> \u00a0<\/p> Most of these changes start in April 2027, which gives you five months. Four conversations worth having with your accountant before then:<\/p> \u00a0<\/p> This is general information, not tax advice. Your accountant can tell you what applies to your business.<\/p> \u00a0<\/p> \u00a0<\/p> \u00a0<\/p> \u00a0<\/p> \u00a0<\/p> \u00a0<\/p> \u00a0<\/p> \u00a0<\/p> \u00a0<\/p> \u00a0<\/p> The main changes are wider Small Business Rates Relief for retail, hospitality and leisure in England (full relief up to \u00a318,000 rateable value from 1 April 2027), a 3.9% rise in the National Living Wage to \u00a313.21 from 1 April 2027, a higher first-year capital allowance (50% from 1 January 2027), a tripled Trading Allowance (\u00a33,000) and a new Founders' Relief. Employer National Insurance, the VAT threshold and Corporation Tax rates did not change.<\/p> \u00a0<\/p> \u00a0<\/p> \u00a0<\/p> \u00a0<\/p> Under the proposals in the government's technical consultation<\/a>, an individual must have held at least 25% of the company when its trade (or preparation for it) started, held the shares for at least five years, and been UK resident for at least five tax years before the sale. The company must have had turnover of at least \u00a310 million and at least 15 qualifying full-time employees in the accounting period before the sale, and pass two of three tests: 25% average annual turnover growth over three years, 25% average annual headcount growth over three years, or at least \u00a31.5 million of R&D on which R&D tax relief was claimed. The relief applies to disposals from 6 April 2027. These are proposals and may change: the consultation closes on 30 November 2026.<\/p> \u00a0<\/p> \u00a0<\/p> \u00a0<\/p> \u00a0<\/p> No. It stays at \u00a390,000.<\/p> \u00a0<\/p> \u00a0<\/p> \u00a0<\/p> \u00a0<\/p> On 1 April 2027, at \u00a313.21 an hour for workers aged 21 and over. The rate for 18\u201320-year-olds rises to \u00a311.27, and for 16\u201317-year-olds and eligible apprentices to \u00a38.31.<\/p> \u00a0<\/p> \u00a0<\/p> \u00a0<\/p> \u00a0<\/p> No. The business rates measures in this Budget apply to England. Business rates are devolved in Scotland, Wales and Northern Ireland.<\/p> \u00a0<\/p> \u00a0<\/p> \u00a0<\/p> \u00a0<\/p> SME Insights is published monthly on our LinkedIn page<\/a>\u00a0and here on the blog. If your company is listed on Enterprise League, make sure your profile is up to date before the new year: claim or update your free company profile<\/a>.<\/p> \u00a0<\/p> \u00a0<\/p> \u00a0<\/p> \u00a0<\/p> Enterprise League figures: enterpriseleague.com and enterpriseleague.com\/business-awards, October 2026.<\/p> \u00a0<\/p>","_et_gb_content_width":"","footnotes":""},"categories":[10],"tags":[8556],"class_list":["post-75869","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-insights","tag-8556"],"_et_post_bg_layout":"light","_et_pb_show_title":"on","et_pb_page_layout":"et_right_sidebar","et_pb_dot_navigation":null,"et_pb_hide_nav_before_scroll":null,"et_pb_show_title":null,"_et_pb_page_layout":"et_right_sidebar","yoast_head":"\nThe numbers behind it<\/h2>\n
What we’re seeing on Enterprise League<\/h2>\n
\n
One practical move: put April 2027 in the diary now<\/h2>\n
\n
Dates to watch\u00a0<\/h2>\n
\n
Frequently asked questions<\/h2>\n
What did Budget 2026 change for small businesses?<\/h2>\n
Who qualifies for Founders’ Relief?<\/h2>\n
Did the VAT registration threshold change?<\/h2>\n
When does the new National Living Wage start?<\/h2>\n
Does the business rates relief apply in Scotland, Wales or Northern Ireland?<\/h2>\n
Get SME Insights every month<\/h2>\n
Sources<\/h2>\n
\n
More must-read stories from Enterprise League:<\/h4>\n
\n
<\/span><\/p>
Key takeaways<\/h2>
What changed for small businesses<\/h2>
Business rates (England)<\/h2>
Wages<\/h2>
What didn't change<\/h2>
Investment and growth<\/h2>
For the self-employed and side businesses<\/h2>
Finance and contracts<\/h2>
What's missing<\/h2>
The numbers behind it<\/h2>
What we're seeing on Enterprise League<\/h2>
One practical move: put April 2027 in the diary now<\/h2>
Dates to watch<\/h2>
Frequently asked questions<\/h2>
What did Budget 2026 change for small businesses?<\/h2>
Who qualifies for Founders' Relief?<\/h2>
Did the VAT registration threshold change?<\/h2>
When does the new National Living Wage start?<\/h2>
Does the business rates relief apply in Scotland, Wales or Northern Ireland?<\/h2>
Get SME Insights every month<\/h2>
Sources<\/h2>
More must-read stories from Enterprise League:<\/h4>