10.5 C
Manchester
Friday, November 28, 2025
BusinessEverything Manchester businesses need to know following the Budget

Everything Manchester businesses need to know following the Budget

A Stockport insolvency expert has outlined what businesses need to know in the wake of this week’s Budget.

Chancellor Rachel Reeves finally delivered her much-anticipated financial statement on Wednesday after months of speculation – and it’s brought a mixed picture for those across the region.

Insolvency practitioner Molly Monks, founder of Bramhall-based Parker Walsh, has supported hundreds of businesses in times of financial distress.

And she’s shared her advice on what business owners should be aware of so they can efficiently reassess their strategies.

Capital Gains Tax

One significant shift relates to Capital Gains Tax relief for Employee Ownership Trusts (EOTs) – historically one of the most tax-efficient ways to sell or implement succession plans.

Mrs Monks said: “For business owners planning succession or looking at disposal routes, this move narrows one of the most tax-efficient exit mechanisms.

“It suggests the government is increasingly willing to revisit long-standing CGT reliefs, and that inevitably prompts directors to reassess their timelines.”

Combined with the planned rise in Business Asset Disposal Relief (BADR) from 10% to 14% in April 2026, owners may now consider accelerating restructuring or Members’ Voluntary Liquidations to maximise current reliefs.

Business rates

The chancellor also announced major reforms to business rates – a move positioned as a boost for high-street operators and frontline sectors grappling with cost pressures.

Mrs Monks said: “High business rates are one of the main concerns for SME owners, so this announcement will be welcome news – but for those with properties above the £500,000 limit the policy could see them struggle to pay the bills.”

Smaller high-street businesses may feel genuine support, but larger premises could face cost increases.

Minimum wage increases
The Budget confirmed a rise in the National Living Wage, which is set to increase staffing costs across labour-intensive sectors such as retail, hospitality, care and logistics.

“For small businesses already under pressure from higher energy and borrowing costs, this may require rethinking pricing, staffing models, and productivity strategies to protect margins,” said  Mrs Monks.

Uncertain future tax policies
Reeves’ selective tightening of reliefs – especially around business disposals – has created a sense of uncertainty about what may come next.

“Businesses may hold off long-term investment until there is clarity on future CGT policy, potential corporate tax adjustments, and further changes to reliefs,” Mrs Monks explained. “This could impact expansion, dealmaking and long-term planning.
“If you rely heavily on investors, you might need to look at other streams of revenue.”

Frozen tax thresholds
Choosing to freeze tax and National Insurance thresholds for three years means more employees will be pushed into paying income tax as wages increase.

Mrs Monks said: “Employers will feel increased payroll pressure. Employers will feel they are taking home less and this can cause complications with recruitment and retention, which can cost businesses.”
News Desk
News Deskhttps://www.businessmanchester.co.uk/
The Business Manchester News Desk team is a collective of experienced journalists and editors dedicated to delivering comprehensive business news and insights from the Manchester area and beyond. With a strong background in finance, technology, property, and innovation, our team ensures that our readers stay well-informed about the latest trends and developments in the business world. Through in-depth reports and insightful analysis, the Business Manchester News Desk team is committed to providing high-quality journalism to its audience.
Latest

Kubicle Highlights Serious Global Shortfall in AI Readiness Among Businesses

Kubicle, a world-leading provider of B2B training in data, tech and AI, has warned businesses globally that urgent upskilling is required to keep pace...

J&K Ross Enhances Workplace Safety Portfolio with New Cleaning and Hygiene Product Line

J&K Ross, based in Warrington and known for its specialist PPE and workwear solutions, has broadened its product portfolio with the introduction of a...

Rio Kavanagh Introduces ‘The Commodity Strategist,’ A Practical Manual for Thriving in Today’s Commodity-Driven Economy

British entrepreneur and financial commentator Rio Kavanagh has released The Commodity Strategist, a succinct guide that equips readers with strategic insight into the increasingly...

New Survey Reveals Britain is a Nation of Nosey Neighbours

A new survey by Jitty has revealed that more than a quarter of Brits (28%) have admitted that they browse property sites just to...
Subscribe to our newsletter
Business Manchester will use the information you provide on this form to be in touch with you and to provide updates and marketing.
Don't miss

New Survey Reveals Britain is a Nation of Nosey Neighbours

A new survey by Jitty has revealed that more than a quarter of Brits (28%) have admitted that they browse property sites just to...

Rio Kavanagh Introduces ‘The Commodity Strategist,’ A Practical Manual for Thriving in Today’s Commodity-Driven Economy

British entrepreneur and financial commentator Rio Kavanagh has released The Commodity Strategist, a succinct guide that equips readers with strategic insight into the increasingly...

J&K Ross Enhances Workplace Safety Portfolio with New Cleaning and Hygiene Product Line

J&K Ross, based in Warrington and known for its specialist PPE and workwear solutions, has broadened its product portfolio with the introduction of a...

Kubicle Highlights Serious Global Shortfall in AI Readiness Among Businesses

Kubicle, a world-leading provider of B2B training in data, tech and AI, has warned businesses globally that urgent upskilling is required to keep pace...

More News

J&K Ross Enhances Workplace Safety Portfolio with New Cleaning and Hygiene Product Line

J&K Ross, based in Warrington and known for its specialist PPE and workwear solutions, has broadened its product portfolio with the introduction of a...

Rio Kavanagh Introduces ‘The Commodity Strategist,’ A Practical Manual for Thriving in Today’s Commodity-Driven Economy

British entrepreneur and financial commentator Rio Kavanagh has released The Commodity Strategist, a succinct guide that equips readers with strategic insight into the increasingly...

Money Wellness Launches New Tool Highlighting the Hidden Impact of Christmas Debt

Money Wellness has unveiled a free Christmas Debt Calculator that shows how long festive borrowing might take to repay and how much interest could...