This Budget brings help with business rates and hiring young people for small business owners. It also brings higher wage bills, new employment rights for staff and less tax relief when you sell your business. Here’s what to plan for.

Business rates

High-street businesses get the most direct help. From 1 April 2027, the rateable value threshold for Small Business Rate Relief for retail, hospitality and leisure businesses in England rises from £12,000 to £18,000. The Treasury says that will take about 70,000 more businesses out of business rates altogether. If you’re close to the new threshold, check your rateable value.

Wages and National Insurance

The National Living Wage rises by 3.9% to £13.21 an hour from April 2027, and the rate for 18 to 20-year-olds rises to £11.27. That younger rate is being brought up to the full rate over time, so if you employ younger staff, your wage bill will grow faster.

Employer National Insurance stays at 15% on earnings above £5,000 a year, and the Employment Allowance remains £10,500. The government turned down calls to remove employer National Insurance for all staff under 25.

Help with hiring young people

Some targeted grants are available instead:

• Youth Jobs Grant: £3,000 for each 18 to 24-year-old you hire who has been on Universal Credit for at least six months. It’s paid in two parts, £1,800 after six weeks and £1,200 after 18 weeks.
• Apprenticeships: if your business doesn’t pay the Apprenticeship Levy, you can get up to £2,000 for each new apprentice aged 16 to 24 in England. The government also pays all of their training costs, up to the funding limit.

New employment rights

From January 2027, staff can claim unfair dismissal after six months’ service instead of two years, and the cap on compensation will be removed. Review your probation periods, contracts and disciplinary procedures now. New laws will also restrict non-compete clauses, so check any restrictive covenants in your contracts.

Selling or growing your business

From 6 April 2027, the lifetime limit for Business Asset Disposal Relief is halved from £1 million to £500,000. The 18% rate is unchanged, and sales before that date keep the £1 million limit. Talk to your accountant before you agree a sale, and don’t bring one forward for tax reasons alone. A new Founders’ Relief will charge 10% on up to £10 million of lifetime gains for founders and early investors in fast-growing UK companies, from April 2027. The final rules are still being consulted on. Since April 2026, higher limits set in last year’s Budget mean more growing companies can use the Enterprise Management Incentive scheme to give key staff share options. Corporation Tax stays at a maximum of 25%.

The bottom line

Expect higher wage bills and stricter employment rules from 2027. Use the grants available to you, get your contracts in order, and plan any sale of your business well in advance.