Wednesday 03 December 2025 - BSIA Comms
The Chancellor’s latest budget brings significant changes that will shape business strategy for years to come:
Business Rates Permanent relief for retail, hospitality & leisure; higher rates for properties over £500k.
Wages National Minimum Wage rises to £12.71 (21+) from April 2026.
Tax Changes Dividend tax up 2 points; new property income tax bands; income tax thresholds frozen until 2031.
Capital Allowances 40% First Year Allowance from Jan 2026; writing-down allowance cut to 14%.
Other Measures EV mileage charge from 2028; sugar tax extended; NI exemption removed for high-value pension salary sacrifice from 2029.
The direct impact on your business will mean higher employment costs and a tighter tax environment, but there is continued support for investment and for high street resilience.
Action points for businesses: Review wage budgets, property exposure, and long-term tax planning now.
Look to supporting apprenticeships within your business?
Key Benefits and Incentives for SMEs:
Government-Funded Training
Training and assessment costs for apprentices under 25 are fully funded, removing upfront financial barriers for SMEs.
Cash Incentives and NI Savings
SMEs receive £1,000 cash incentives plus National Insurance savings up to £3,000 per apprentice annually.
Affordable Wage Costs
Apprentices can be paid the Apprenticeship Minimum Wage, lower than the National Living Wage, keeping wage costs manageable.
Strategic Workforce Benefits
Apprenticeships support workforce development, succession planning, and higher employee retention for SMEs.
Detailed Cost-Benefit Analysis:
Direct Apprenticeship Costs
Wages at £8/hour for 37 hours weekly total £15,392 annually, with training costs fully government-funded.
Financial Incentives
Government grants and waived employer National Insurance reduce costs by over £4,000 annually.
Indirect Recruitment Benefits
Recruitment savings estimated at £3,500 due to apprentices staying post-program, reducing hiring costs.
Effective Cost and ROI
Effective cost drops to £4,892, offering SMEs trained employees and long-term workforce stability.