With UK growth slowing to just 0.3 per cent in Q2, business confidence is fragile.

Momentum has faded after a surge in exports ahead of new tariffs earlier this year, while weaker consumer confidence and persistently high household savings add to the uncertainty.

The upcoming Autumn Budget is amplifying concerns with the expectation that the Chancellor will revisit a range of tax-raising measures to manage a potential £50 billion shortfall.

For businesses, this makes planning investment, recruitment and payroll increasingly challenging.

What might be on the table?

There’s been plenty of speculation about what the Chancellor may announce in the Autumn Budget.

While nothing is confirmed, some areas making the headlines include:

• Reforms to Inheritance Tax (IHT) with possible tightening of reliefs on gifts, alongside adjustments to the residence nil-rate band.
• Talk of Capital Gains Tax (CGT) rates being brought closer in line with Income Tax and of potential levies affecting high-value properties.
• A potential reduction to the VAT threshold has been suggested, which could bring more small businesses into the VAT system.
• Proposals for changes to property taxes which include replacing Stamp Duty with an alternative levy on higher-value homes.
• Suggestions around restricting the amount available as a tax-free pension lump sum.

Many of these ideas are still at the rumour stage and even if changes are introduced, they are unlikely to be as far-reaching as some of the headlines like to suggest.

How you can respond to change

The uncertainty is already affecting recruitment intentions, with more businesses relying on temporary or flexible contracts rather than investing in new, permanent staff.

Consumers are saving more and spending less due to caution around potential tax rises, which is hitting revenues in consumer-facing industries.

Major investment decisions are also being delayed until after the Budget in anticipation of more change.

However, even amid uncertainty, you can take steps to reduce risk:

• Plan for different tax scenarios, including higher employer costs or property and CGT changes.
• Review payroll and benefits to stay compliant and competitive.
• Streamline processes with technology to boost efficiency.
• Utilise short-term hiring options, while planning for long-term workforce needs.

Uncertainty does not have to stall growth! Contact our advisers today for tailored support and strategies to keep your business moving forward.