Expert warns Reeves’ Budget leaves small businesses ‘paying the price’

Laura Court-Jones, Small Business Editor at Bionic, commented: “Reeve’s statement was all about ‘everyone contributing’, and this was no exception for UK small businesses. Not only that, when it comes to energy bills, small businesses are missing out on vital support. 

“A reduction in green levies is expected to knock about £150 a year off the ‘average’ domestic energy bill. But no similar relief has been announced for non-domestic energy users. While domestic energy has a price cap to keep rates relatively low, there’s no such cap for business energy rates, leaving businesses sensitive to price volatility if not locked into a fixed contract.”

Rising wage pressures but relief for apprenticeships

“The national minimum wage is set to rise again, leaving business owners trying to find extra cash to pay their staff more. But apprenticeship training for under-25s will soon be free for SMEs. This will be welcomed and should help them find new, young talent and train them up without footing all the costs.

Business rates relief is welcome, but it’s not enough

“The 40% business rates relief for small businesses in hospitality, retail and leisure will be made permanent from April 2026, in a bid to stop ‘online giants from destroying our high streets’. This essential change was needed to keep our high streets afloat, but is it really enough amidst other rising costs?

Support is still falling short

“While we have seen some positive changes to try and support our UK backbone businesses, running and operating a business in this economy comes at a huge cost, leaving business owners feeling squeezed tighter every year and wondering if they can keep on going without stronger government support.”