Responding to today's Budget announcements, Tina
McKenzie, National Chair of the Federation of Small Businesses
(FSB), said:
This Budget should have been the moment to help small businesses
with the soaring costs holding them back, and the taxes
restricting job creation. Instead, they got nothing to ease
sky-high energy bills and nothing to make hiring someone more
affordable, while the increase in business rates relief excludes
too many.
The Government has an ambition for growth in every postcode.
Today's Budget missed the mark on matching that ambition.
Our latest research shows nearly half of small businesses (47%)
expect their revenues to shrink in the coming months, while only
around a fifth (22%) expect revenue growth. They are three times
more likely to be planning to reduce headcount than increase it
(18% versus 6%). There was nothing today anywhere near big enough
to change that gloomy outlook.
The increase in Small Business Rate Relief for small firms in
retail, hospitality and leisure is welcome for those who will be
lifted out of rates. FSB has campaigned hard for the threshold to
be lifted for the first time since 2016, but it should have been
applied much more widely. Small businesses blighted by the rates
system aren't just on the high street. Where was the help for the
likes of manufacturers, small exporters, nurseries, office-based
businesses and in turn the people they employ?
Of the smaller measures announced, we're pleased the Chancellor
has acted upon our call to increase the Trading Allowance from
£1,000 to £3,000. This will incentivise potential small business
owners of the future to take the first steps to exploring a
business idea, alongside the new Young Entrepreneurs Allowance.
Parental pay rights for self-employed dads and partners is also a
good step.
We've been very pleased to see the Government adopt 14 out of the
15 recommendations from the Small Business Regulation Taskforce,
which was co-chaired by FSB, including a reversal of the
Companies House plan to make even the smallest businesses submit
profit and loss declarations.
The Chancellor acknowledged the risks and hard work involved in
setting up and running a business, and building it across many
years. It is incredibly unclear what difference his plans for
founders' relief compared to entrepreneurs' relief, officially
called Business Asset Disposal Relief, will make. The Chancellor
must urgently clarify whether he intends to tax or back those who
spend a lifetime running and growing successful businesses.
Joshua Miles, Head of FSB Wales, said:
"This Budget should have been an opportunity to give small
businesses the support they need to cope with rising costs and
economic uncertainty. Instead, many firms in Wales are still
waiting for meaningful help with the everyday pressures holding
back investment, growth and job creation.
"The Welsh Government must now use Budget consequentials,
including those arising from business rates changes in England,
to increase the Small Business Rates Relief threshold in Wales.
Expanding eligibility for relief would bring more small firms
into scope for support, giving them vital breathing space.
This is a clear opportunity for the Welsh Government to back
small businesses and create the conditions that help
entrepreneurs start, sustain, scale and succeed."
Ends.
Notes to editors
- Statistics are from FSB's Small Business Index (SBI) Q3 2026
research. FSB surveyed 1,033 small business owners and sole
traders between 10-24 September 2026.
