Employment allowance rise welcome from Chancellor in tax-raising Budget

Why the Budget Is a Big Win for Small Businesses

It’s the kind of news that makes the whole working world sigh a little easier. The Chancellor has finally taken note of what we’ve been saying for years: small businesses need a boost.

Doubling the Employment Allowance

From £5,000 to £10,500 – that’s a new‑record hike.
It means the tiniest teams are shielded from the jobs tax, a pro‑jobs priority that’s all the more welcome in a tough Budget.

Freezing the Small‑Business Multiplier

Inflation could hate business rates, but the government has decided we’ll stay calm.

Keeping the multiplier static spares small firms owning premises in all sectors.
There’s a slightly reduced extension of relief for those in retail, hospitality, and leisure – a smart move that eases a potential cliff‑edge tax hike for some of the most hit‑hard industries.

Testing the Budget’s True Impact

The real challenge? Will these moves help small businesses grow and finally break the UK’s economic stagnation?

What the Budget Leaves on the Table

Large and medium‑size businesses still face higher employer National Insurance costs, plus the rollover of government‑backed employment law plans.
Our own early warning about the overload of changes for SMEs – and how that could ripple through jobs, wages, and prices – has been heeded.

New Strategy Signposts

The Budget includes a small‑business strategy command paper—a clear acknowledgment that local entrepreneurs are the engine of growth. We’re ready to collaborate closely with ministers to keep this momentum alive.

Infrastructure: The Glue for Future Growth

Extra funds earmarked for rail projects and pothole fixes—great news for small firms.
Most will breathe a sigh of relief that fuel duty won’t rise.
Small housebuilders are getting the spotlight in the housing investment plan.

Risk, Reward, and the Entrepreneur Spirit

Running a business is risky and personal, but the economy thrives when people dare to start and grow ventures. More impetus means more jobs, opportunities, and prosperity across communities.

Entrepreneurs’ Relief Gets a New Make‑over

Now branded Business Asset Disposal Relief, it keeps tax relief up to £1 million for those pressing on. It’s a little slower to phase out, but the differential remains, a compromise we’ve long campaigned for.

Bottom Line

Against a difficult backdrop, the Budget sends a clear signal: support goes to the grassroots—small businesses—rather than big corporates. It prioritises everyday entrepreneurs that make up local communities everywhere.