I agree with this blog though it’s not by me.

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Lucy Cohen, founder of accountancy business Mazuma and President of the Association of Accounting Technicians, says the Autumn Budget has left SMEs out in the cold this winter.

“Small businesses keep Britain running, they are the backbone of our nation, yet they have been treated as an afterthought,” said Lucy.

“The Chancellor talked about fairness, but you cannot deliver growth or productivity without SMEs.”

The Budget confirmed tax freezes and rises that will directly hit business owners, including Income Tax and National Insurance thresholds locked until 2031, rising dividend and savings rates and higher property income tax from 2027, which will particularly hit landlords.

“Owners who often rely on a mix of salary and dividends will feel the squeeze immediately when these changes are introduced next year,”

….Lucy added.

Employers also face another steep jump in statutory wage rates from April 2026:

• National Living Wage – £12.71
• National Minimum Wage (18 to 20 year olds) – £10.85
• National Minimum Wage (16 to 17 year olds and apprentices) – £8.00

“These rises land on top of substantial National Insurance changes earlier this year, but with no extra support,”

Lucy said.

“Many SMEs will simply struggle to hire or retain staff.”

Businesses must also contend with a cut in the writing down allowance to 14 per cent and the halving of Capital Gains Tax relief on Employee Ownership Trusts.

Lucy said that the nation’s hairdressers, independent café owners, plumbers, mechanics and greengrocers were the fabric of UK society that sat at the heart of British culture, which could all be lost if more support is not delivered soon.

“SMEs and their owners are being asked to absorb higher taxes, higher wages and higher running costs entirely on their own,”

she added.

“Where is the promise of new reliefs or support for businesses on the frontline of the economy?”

Lucy says the Government missed a clear chance to show that they support the “backbone of Britain”.

She concluded:

“SMEs are resilient, but there is only so much they can carry. If the Government want a stronger, fairer economy, they must start supporting the small businesses that hold it together.”

There is much that SMEs contribute to Britain and if we want to see growth in Britain, we cannot ignore SMEs. AgeWage is an SME and our allies, firms such as Collegia, act for SMEs.

It is about time that trade bodies got on the front foot and campaigned for Small and Medium sized Employers. If you want to use enterprise as an alternative to employer do so, very few SME’s do not struggle as they strive to be enterprising. It is their enterprise that will bring the lasting growth Britain needs and the Chancellor wants.

Comment from Byron