Small Business Britain has given a cautiously positive response to the Chancellor’s November 2025 Budget, saying the package provides “some relief” for small firms and signals a renewed focus on reducing living costs and supporting entrepreneurial growth.
Michelle Ovens CBE, CEO and Founder of Small Business Britain, said the Budget contained several welcome measures, particularly those aimed at strengthening the talent pipeline and easing cost pressures for SMEs.
“We were encouraged to hear about key initiatives, including free apprenticeship training for under-25s for SMEs, and are grateful for the Chancellor referencing Small Business Britain’s work in this,” she said. “We are excited to contribute to the Government’s review of how it can better back entrepreneurs.”
Ovens also welcomed further measures designed to support growth and investment, including a 40% first-year allowance for main rate assets and the decision to make business rates reductions permanent for more than 750,000 retail, hospitality and leisure businesses across the UK.
However, she acknowledged that some small firms will feel the impact of other policy changes, including the rise in the National Minimum Wage and higher dividend tax rates. Even so, she said these pressures may be offset by broader economic stabilisation.
“Some businesses will be affected by the rise to minimum wage, and entrepreneurs impacted by the increased dividends tax, but we hope these should be outweighed by the predicted stabilisation of the economy.”
Small Business Britain’s own data points to increasing consumer confidence ahead of the festive trading period. Research for Small Business Saturday on 6 December suggests UK consumers could spend over £23 billion this Christmas, with £5.3 billion, almost one-fifth, expected to go directly to small businesses. That represents a 19% increase on projected spending with small firms last year.
Ovens said the Chancellor was right to underline the importance of small firms in his speech.
“Overall, we believe businesses should face 2026 with confidence, and at Small Business Britain, we are here to ensure they do,” she said. “The UK’s 5.6 million small businesses play an indispensable role in driving Britain’s economy forward and creating jobs, and it was positive to hear this message reiterated at the opening of the Chancellor’s speech today.”
