Over three-quarters of SME finance experts say the Labour Government have had a negative impact on small businesses (according to Iwoca’s latest SME Expert Index) and over 52% of SME’s say rising running costs are their biggest concern.

Ahead of the Autumn Budget tomorrow, our director Sam German has noted the predictions which may affect your business, it’s running costs and how Penumbra can prepare you for entering 2026…

Tax Rises

Whilst we don’t know for definite what the Chancellors plans will be – reports have suggested there will be no rise to income tax, however the below predictions may impact your operational costs and chip into cashflow you may have set aside for expansion:

• Potential VAT threshold change: smaller businesses may be forced to become VAT registered meaning if you are a startup business, your growth plans could be affected.

• Dividend tax increase: this may affect your business if you take your income in dividends as you may need to pay tax on this if you do not already.

• Rise in minimum wage: if you pay your employees minimum wage, this may be rising from April 2026.

Fuel Duty Freeze

• The freeze on Fuel Duty has been in place since 2011 and is anticipated to have a small rise if, the freeze is ended: running costs for SME’s who are reliant on vehicles / plant and machinery will be affected, another hit for certain sectors after the removal of red diesel in April 2022.

Here’s how Penumbra can help you navigate and prepare for these unprecedented times, with flexible finance to stay ahead of the pressures:

• Asset Finance – spread the cost of your purchase and keep hold of your cash for more important costs, such as the running of your business and growth.

• Asset Refinance – if your business owns assets which hold an equitable value, these can be used to release cash (with a potential for no Personal Guarantee as opposed to a business loan).

• Invoice Finance – now more than ever, you may be feeling the constraint of waiting to be paid, Invoice Finance is a good way to receive cash early to pay for overheads within the 30-90 day wait.

• Business Loan – release instant working capital for your business.

At Penumbra, we understand your businesses needs, and delve into the best options for you. We work with a strong panel of lenders to provide you with bespoke options, we also provide quotes which can be valid for up to three months, so now could be a great time for you to lock in a rate to protect your business from the potential affects from the Autumn Budget.

Last updated: 25 November 2025