The Chancellor has spoken, the headlines are flying, and founders across the UK are trying to figure out one thing!
but how does this actually affect me and my business?”
Key Announcements & What They Mean for Founders
1. Income tax frozen until 2031
Impact on founders:
A freeze sounds harmless, but it creates “fiscal drag”: as your income increases, more of it quietly falls into higher tax bands. For founders paying themselves through salary + dividends, this squeeze could reduce take-home pay even if your business grows.
Action: review your tax strategy for 2026–27 especially if you’re scaling.
2. Business rates reforms
Good news for high-street founders. Retail, hospitality, and leisure will benefit from permanently lower rates, 5p below standard multipliers.
Impact on founders:
If you run a salon, café, studio, or storefront this is one of the few tangible wins. It’s designed to revive the high street and reduce overheads.
Transitional relief + capped increases also protect the smallest businesses.
Action: speak to your accountant early 2026 to check what reliefs apply to your property.
3. National Minimum Wage increases
From April 2026, pay rises again:
21+ → £12.71 / hr
18–20 → £10.85
Under 18s / apprentices → £8
Impact on founders:
If you employ staff, expect higher payroll costs. Many founders are already delaying hiring this may continue.
Action:
Review your pricing before Q2 2026.
Automate and streamline wherever possible.
4. Fuel duty frozen until Sept 2026
A small stabiliser for founders reliant on travel, deliveries, or mobile services.
Impact: Costs won’t rise… yet.
5. Plastic packaging tax increase
Impact on product-based founders:
Costs will rise if you’re still using virgin plastic.
A gentle push toward sustainable packaging, but another margin pressure.
6. £150 cut to household energy bills
Doesn’t directly support businesses, but may ease pressure on consumer spending helpful for founders in B2C markets.
7. New tax on electric vehicles (from 2028)
EV driving gets more expensive.
Impact:
If your business relies on EVs, factor this into long-term fleet or travel planning.
8. ISA system reforms
From 2027, £8,000 must go into stocks & shares ISAs, the rest into cash.
Impact on founders:
Better for those building personal investment portfolios or planning to invest business profits.
9. Tax rise on savings & dividends
From 2026–27:
Dividend tax rises by 2%
Savings tax rises by 2% from April 2027
Impact on founders:
This one hits directly. Many founders rely on dividends as their main income this reduces take-home and may affect how you pay yourself.
Action: review your pay structure by next tax year.
10. Sugar tax expansion (from 2028)
If you produce drinks milkshakes, coffee drinks, or sugary products brace yourself.
Impact:
Manufacturers and small drink brands will see cost increases.
Additional Announcements (Quickfire)
Help to Save extended to more people on Universal Credit
State pension rises 4.8% in April 2026
Two-child benefit cap scrapped
Rail fares frozen until March 2027
These aren’t business-specific, but they influence the financial environment your customers, clients, and staff are living in.
What This Budget Means for Founders The Real Takeaway
The Autumn Budget 2025 isn’t a game-changer.
It’s a balancing act attempting to control inflation while offering small, targeted support.
Founders will feel this in three main ways:
1. Higher payroll + operation costs
Minimum wage rises + packaging tax + dividend tax increases = more pressure on margins.
2. High street relief is a bright spot
Retail, service-based, and hospitality founders finally get a meaningful win.
3. “Fiscal drag” slowly tightening personal income
With thresholds frozen, earning more doesn’t always feel like more.
For Forty60 Founders: What to Do Next
Here are three practical moves for the months ahead:
1. Review your pricing strategy for 2026
Costs are rising quietly and on multiple fronts. Make sure your pricing isn’t stuck in 2023.
2. Systemise to protect your margins
Automation, better booking flows, clearer customer journeys. Cut waste before you cut potential.
3. Revisit your founder pay mix
Salary + dividends may need rebalancing. Speak to your accountant before the new tax year.
The Forty60 journey is about helping founders not just survive, but scale with clarity and that includes protecting your business during shifting economic tides.
