On 28 October 2026, the Chancellor unveiled the Government’s latest Budget, with a strong focus on easing cost-of-living pressures, supporting high street businesses, and stimulating economic growth.
While many of the announcements were aimed at households, there are several key measures that business owners should be aware of.
Here’s our summary of the most notable changes and what they could mean for your business.
Minimum Wage Set to Increase
One of the headline announcements was a 3.9% increase in the National Minimum Wage.
Businesses with employees should review their payroll costs and budgets to ensure they are prepared for the impact of higher wage bills.
For many employers, this increase will also have a knock-on effect on pensions, National Insurance contributions, and salary structures.
Business Rates Relief for Retail, Hospitality and Leisure
The threshold at which retail, hospitality and leisure businesses begin paying business rates is increasing from £12,000 to £18,000.
According to the Government, this change could mean that around half of shops, restaurants and gyms will no longer pay business rates.
For small businesses operating from commercial premises, this could represent a meaningful reduction in overhead costs.
If your business falls within one of these sectors, it’s worth reviewing whether you’ll benefit from the new threshold.
VAT Compliance Under Increased Scrutiny
The Chancellor also announced plans to strengthen the requirements for online marketplaces to collect VAT from online sellers.
Whilst this measure is primarily aimed at large online platforms, it serves as another reminder that VAT compliance remains a key focus for HMRC.
Businesses selling through online marketplaces should ensure:
- VAT returns are being submitted on time.
- VAT registrations are up to date.
- Sales are being reported correctly.
- Accounting software is accurately recording transactions.
Energy Cost Support
Several measures were announced to reduce energy costs for households, including the removal of certain green levies from bills, the continuation of the temporary VAT reduction on electricity, and the removal of gas standing charges.
Whilst these measures are primarily targeted at consumers rather than businesses, lower household costs can help increase consumer spending power, which may indirectly benefit many sectors.
What Does This Mean for Business Owners?
If your business uses platforms such as Deliveroo, Uber Eats, or Just Eat, the The overall theme of the Budget is clear: reduce pressure on everyday costs while providing support to certain sectors of the economy.
For business owners, the key actions are:
✅ Review payroll budgets ahead of the minimum wage increase.
✅ Check whether your business may benefit from the higher business rates threshold.
✅ Ensure VAT records and reporting processes remain compliant.
✅ Update budgets and forecasts to reflect any changes in operating costs.
As always, the full impact will depend on your specific circumstances and further details may emerge in the coming weeks.
How Your Ledger Can Help
At Your Ledger, we support restaurants, cafés, takeaways, and hospitality businesses with:
- Bookkeeping services
- VAT return preparation
- Xero support and implementation
- Management accounts
- Cash flow reporting
- HMRC compliance support
Our team helps ensure your financial records remain accurate, giving you more time to focus on running and growing your business.
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