The Spring Budget 2025, announced by Chancellor Rachel Reeves on 26 March 2025, brings a series of changes that will directly impact small businesses. At Coplow Business Support, we’re here to help you make sense of the updates and guide you through how they affect your finances, taxes, and overall business strategy.
Key Takeaways for Small Businesses
Economic Outlook
The Office for Budget Responsibility (OBR) has lowered the UK’s growth forecast for 2025 from 2% to 1%, indicating potential economic challenges ahead. Businesses should focus on strong financial planning and budgeting to remain resilient.
Taxation & National Insurance Changes
- Employer’s National Insurance Contributions (NICs) to increase – This means higher employment costs for businesses. If you employ staff, now is the time to assess your payroll strategy and explore cost-saving measures.
- VAT threshold remains at £90,000 – If your turnover exceeds this, VAT registration remains mandatory.
- Corporation Tax remains at 25% for profits over £250,000 – Smaller businesses with profits under £50,000 continue to benefit from the 19% rate.
Concerned about how tax changes affect your business? Get in touch with Coplow for expert guidance!
Business Rates & Relief Adjustments
- The Retail, Hospitality, and Leisure Business Rates Relief is being reduced, which could lead to higher property tax costs. If you operate in these sectors, it’s essential to plan ahead.
- Increased capital spending on infrastructure could present new business opportunities in certain industries.
Government Initiatives & Funding
- A new £3.25 billion Transformation Fund is being introduced to drive efficiencies. Understanding how government funding applies to your business could help secure support.
- Additional investments in housing and infrastructure may create supply chain opportunities for local businesses.
What Does This Mean for Businesses in Clitheroe & the Ribble Valley?
These changes will affect small businesses across Lancashire, particularly those with employees, VAT obligations, or property costs. Navigating tax adjustments and staying on top of compliance is more crucial than ever.
At Coplow Business Support, we make sure you stay informed and ready to adapt. We offer:
- Bookkeeping to manage increasing costs
- Tax efficiency planning to keep your business compliant and profitable
- Business budgeting advice to help weather economic changes.
Worried about tax changes? Need help with VAT compliance? Let’s chat! Book a call with us today to ensure your business is prepared.
Contact us now: 01200 407100
