By Gemma Broadbent, Partner & Head of Corporate
In the Chancellor’s November 2025 Budget we were all presented with a message of support, growth and drive in productivity, the impact is likely to be felt almost immediately by the SME market.
SMEs will be bearing the brunt of the increase in employing staff and business running costs.
National Minimum Wage
The most significant change for SMEs comes from the increase in the national minimum wage. For over 21 year olds this will increase by 50p per hour from April 2026, to £12.71, a rise of 4.1%. national minimum wage. Workers aged 18 – 20 will see a larger increase of 8.5% to £10.85 an hour and 16 and 17 year olds will get a 6% increase to £8 per hour.
For labour-intensive businesses – hospitality, retail and care, this planned increase will be particularly challenging.
Apprenticeship Support
An opportunity to counter these increases may come in the form of the introduction of further financial support for apprenticeships. The Chancellor announced £725m of support for apprenticeships, including fully funded SME apprenticeships for eligible young people. This is welcome for sectors struggling with recruitment and skills gaps.
It all boils down to cashflow. This is particularly important for owner-managed businesses where financial resilience (often with the use of personal cashflow) may already be a stretch too far.
How Can Goughs Support?
We can support you navigating these changes, including:
- Reviewing personnel structures and strategies
- Advising on corporate restructures
- Assisting on employee incentivisation opportunities to retain those star employees
- Building and testing business-continuity planning
Our advice, start talking and keep talking to us. Early planning is key and will put you in the driving seat.
Post-Budget Briefing
Why not join us at our exclusive ‘Post Budget Briefing?’
- To be hosted alongside Fidelius Financial Advisors and Pearson May Accountants
- Wednesday 7th January 2026, from 6pm
- At the beautiful Hartham Park Estate, Corsham
- BOOK NOW