Chancellor Rachel Reeves has now delivered her much-awaited Autumn Budget, set against the unusual backdrop of the Office for Budget Responsibility (OBR) report being accidentally leaked only hours beforehand.

While the previous Budget brought major changes including increases to National Insurance, this Autumn update introduces a wide mix of moderate but meaningful adjustments across taxation, household finances, and business support.

The economic backdrop

• The OBR expects the British economy to grow by 1.5% in 2025, up from the previous forecast of 1%.
• Consumer price inflation is also set to remain higher than first anticipated, now forecast to average 3.5% this year, before falling to 2.5% in 2026, and returning to the Government’s 2% target in 2027.
• This combination of moderate growth and continued inflationary pressure shapes much of the Chancellor’s approach.

Key measures affecting business owners

In this Budget, the Chancellor set out a series of measures aimed at strengthening support for small businesses, manufacturers and the defence sector, along with fresh investment in the UK’s AI capabilities. SMEs will benefit from free apprenticeship training for under-25s, backed by £820 million over three years through the youth guarantee. The National Minimum Wage will rise from April 2026, increasing to £12.71 per hour for over-21s, £10.85 for those aged 18 to 20, and £8 per hour for under-18s and apprentices.

Businesses will also see targeted relief in other areas. Permanent lower business rates will be introduced from April 2026 for around 750,000 retail, hospitality and leisure properties. Investment incentives are being strengthened, with a new 40% First-Year Allowance for qualifying assets from January 2026, the £1 million Annual Investment Allowance retained, and the limits for the Enterprise Investment Scheme and Venture Capital Trusts doubled to £10 million per year, or £20 million for knowledge-intensive companies.

Several tax measures will influence longer-term financial planning. Income-tax thresholds will remain frozen for an additional three years, something the OBR expects will lift around 780,000 more people into the basic rate, 920,000 into the higher rate and 4,000 into the additional rate by 2029. Rates on dividend, savings and property income will rise by 2%. Properties worth more than £2 million will face a new annual surcharge collected through council tax, set at £2,500 and expected to raise £400 million by 2031.

Electric vehicle owners will pay vehicle excise duty for the first time, while fuel duty will stay frozen for a sixteenth year and the temporary 5p cut on petrol and diesel will continue. Alcohol and tobacco duties will rise in line with inflation, and the gambling tax regime will undergo major changes.

For an overview of the key points from the Autumn Budget, click here to see a guide from the BBC. 

What this means for the deal market

While the Autumn Budget does not carry the same weight as previous announcements, it provides clarity on the government’s fiscal direction.

The past six months have been challenging for many businesses with economic growth of 1.5% and inflation sitting at around 3.8% and with higher National Insurance rates increasing cost pressures. These pressures, combined with uncertainty over tax and spending plans, led many business owners to delay major decisions, including strategic investment and exit planning.

With the Autumn Budget now providing greater clarity, conditions are expected to stabilise. As businesses begin to recover through 2026, confidence should return, creating a more favourable backdrop for deal activity. We anticipate renewed momentum in the M&A market next year as owners who paused plans re-engage and buyers respond to a clearer economic and fiscal environment, suggesting a more positive dealmaking environment in 2026.