

The 2026 Budget, delivered yesterday by Chancellor John Healey, includes a number of measures that will impact businesses, employees, those in self-employment and job seekers.
While some changes offer opportunities, others underline the financial pressures employers continue to face.
Here are our five key takeaways.
1. Minimum wage rises
From April 2027, the National Living Wage for workers aged 21 and over will rise from £12.71 to £13.21 an hour. The minimum wage for 18 to 20-year-olds will increase from £10.85 to £11.27, while the rates for 16 to 17-year-olds and eligible apprentices will go up from £8 to £8.31.
For employees on lower wages, the increase will provide a real boost in this continuing cost of living crisis.
However – for small businesses already managing rising costs including the National Insurance increases in the last budget – higher wages will add to the cost of employing staff. That could mean cutbacks on recruitment or existing staff levels.
2. Business rates relief expanded
From April 2027, the threshold at which retail, hospitality and leisure businesses pay rates (a charge on commercial properties) has been increased from £12,000 to £18,000. The Government says this means half of the UK’s shops, restaurants and gyms will now pay no business rates.
This could make a meaningful difference to eligible shops, restaurants, cafés, gyms and other high street businesses, freeing up money to invest in growth, staff or other running costs. However, eligibility depends on the property’s rateable value and the relief rules, so businesses should check how the changes apply to their own circumstances.
3. The tax-free trading allowance boost for side hustles
From April 2027, the allowance for individuals earning income through self-employment or side projects before they have to start paying tax on that money will increase from £1,000 to £3,000.
For many of our clients, who earn a small amount of additional money alongside their regular job – for example through a side hustle, monetising a hobby or simply selling on Vinted and eBay – the change will make it easier to test ideas without the cost and red tape of worrying about tax until it is successful.
4. New support for entrepreneurs and women-led businesses
The Government will pilot a Young Entrepreneurs Allowance in England, offering successful applicants support towards living costs during their first year of business. It has also announced increased funding commitments for women-led businesses to help overcome some of the barriers many women still face.
For people considering starting a business, these measures are definitely worth following as further details emerge, including eligibility and how to apply. If you want to know more, please book an appointment with one of our business advisers.
5. Apprenticeships expanded
The Budget includes £100 million across 2027–28 and 2028–29 to expand local apprenticeship services, helping young people and employers – particularly small and medium-sized businesses – create more opportunities.
For young people seeking their first job, apprenticeships can provide a route into employment while developing practical skills and experience. For employers, greater access to support could help them recruit and train new talent.
However, again, the impact will depend on how the schemes are delivered and how easily businesses can access the opportunities. Get in touch with us to explore apprenticeship options.