The 2024 Autumn Budget, delivered by Chancellor Rachel Reeves, introduces a host of changes set to affect businesses across the country.
With steep increases in employer National Insurance Contributions and a restructured business rates system, this Budget marks a substantial shift in national economic strategy.
At Double Point, our team of chartered accountants has thoroughly reviewed these updates to help you clearly understand what they mean for your business.
Read on as we examine the key measures in the Budget, explore their potential effects, and offer strategic insights into business finances for the present and future.
Let’s dive in.
Employer National Insurance Contributions (NICs) Increase
Who it affects: All UK employers.
What the changes are: From April 2025, the employer NICs rate will increase from 13.8% to 15%. Additionally, the threshold at which employer NICs become payable will drop from £9,100 to £5,000.
The impact: This measure is projected to raise £25 billion per annum for the government, making it one of the most substantial revenue-generating changes in the Budget. For businesses, it will mean increased labour costs, potentially leading to reduced hiring, smaller pay rises, or higher prices passed on to customers.
However, the government has aimed to soften the blow for smaller employers. The Employment Allowance, which allows businesses to reduce their NIC costs, will increase from £5,000 to £10,500 per year, and the previous £100,000 NIC bill eligibility limit has been removed.
According to the government’s projections, an estimated 865,000 businesses will pay no NICs, while a further 1 million will see no change or save money overall.
However, employers are already bracing themselves for higher employment costs, which will almost certainly affect people’s take-home pay.
Business Rates Relief Reduction and Overhaul
Who it affects: Primarily businesses operating in England’s retail, hospitality, and leisure sectors.
What the changes are: For the 2025-26 tax year, eligible retail, hospitality, and leisure (RHL) properties will benefit from a 40% business rates relief, subject to a £110,000 per business cash cap. This represents a significant reduction from the previous 75% discount, though this was intended to be temporary.
The government has also committed to introducing permanently lower business rates multipliers for RHL properties from 2026-27, funded by a higher multiplier for properties with rateable values above £500,000.
The impact: The average RHL business rates bill is set to rise by around 140% next year, from £3,589 to £8,613 for retail premises, for example. This will burden many high street businesses already grappling with the rising cost of living.
Targeted Sector Support
Who it affects: Businesses operating in the aerospace, automotive, and life sciences sectors.
What the changes are: The Budget confirmed long-term support for these key industries, including:
- £975 million over 5 years for the aerospace sector
- Over £2 billion over 5 years for the automotive sector, focusing on zero-emission vehicle manufacturing
- Up to £520 million for a new Life Sciences Innovative Manufacturing Fund
The impact: These sector-specific investments are designed to drive innovation, productivity, and the UK’s competitiveness in strategically important industries. Businesses within these sectors can expect enhanced funding opportunities and a supportive policy environment to aid their growth and development.
Encouraging Business Investment
What the changes are: The government will maintain the £1 million Annual Investment Allowance, providing certainty for businesses looking to invest in their future growth. The 100% First Year Allowances for zero-emission cars and electric vehicle charge points will also be extended for another year.
The impact: These measures aim to incentivise businesses to continue investing in capital expenditure, machinery, and low-emission vehicles. This should help boost productivity and support the UK’s transition to a greener economy.
Prioritising Small Business Support
What the changes are: The Budget confirmed several initiatives to support small businesses, including:
- Over £1 billion for the British Business Bank to enhance access to finance
- Over £200 million for small business support programs, such as Growth Hubs
- Doubling of funding for the Made Smarter Adoption program to £16 million
The impact: These measures aim to improve small businesses’ access to finance, advisory services, and productivity-enhancing technologies. This should help strengthen the resilience and growth potential of the UK’s small business community.
Prompt Payment Practices for Large Contracts
Who it affects: Companies bidding for public sector contracts worth over £5 million per annum.
What the changes are: From 1 October 2025, these companies will be excluded from the procurement process if they do not pay their suppliers within an average of 45 days.
The impact: This change is designed to encourage larger businesses to adopt more responsible payment practices, ensuring smaller suppliers are not left waiting for extended periods to receive the funds owed to them.
Investment in Research and Development (R&D)
What the changes are: The government has committed to £20.4 billion in R&D funding for 2025-26, including at least £6.1 billion for core research. There will also be a new £25 million multi-year R&D Missions Program and increased funding for the National Institute for Health and Care Research.
The impact: These investments aim to drive innovation, productivity, and the competitiveness of the UK economy. Businesses engaged in R&D activities can expect to benefit from enhanced funding and support.
Taking Action: Double Point’s Guidance for Navigating the Changes
The 2024 Autumn Budget will dramatically impact some businesses, both in the short and long term.
From increased NICs to a restructured business rates system, these changes will shape the country’s financial landscape for years to come.
At Double Point, we’re here to help you make sense of what’s next. As chartered accountants with a practical approach to tax and financial planning, we’re focused on helping you navigate both the challenges and opportunities in this Budget.
Whether you’re looking to manage tax more effectively, plan for growth, or protect profitability, we’ll provide advice that fits your business needs.
Get in touch today to discuss what the Budget means for your business, and let’s work together to set a solid course for the future.
