4 Finance, Legal & Professional Services


8TH JANUARY 2026


NEW YEAR IN THE CAPITAL AN ADVERTISEMENT FEATURE DISTRIBUTED WITH Decoding the budget


While the November budget had an unenthusiastic reception, experts say it provides a unique opportunity. Words: Priya Raj


November’s budget review from Chancellor Rachel Reeves saw her announce over £26 billion in tax rises, which inevitably caused dread and panic — mostly from business owners who have already faced severe turbulence. For those already grappling with the consequences of inflation, the cumulative effect is difficult to ignore. Here, experts reveal how to solve the numbers.


Pressure points Nothing grabs attention like changes to business rates. Te government introduced permanently lower business rate multipliers for smaller businesses but increased them for their larger counterparts. Tis is a relief designed to support the high street, but the reception has been mixed to say the least. Many now face sharply increased bills because assessments reclassify their properties at much higher values. Such shifts illustrate an emerging


PEXELS


strategic dilemma for business owners, where routine forecasts must now foreground liquidity in an environment of mounting fixed costs. Abi Hill, founder of Just Starting Out, says: “My biggest advice is to get ahead of cash flow. With costs still rising, small businesses need to forecast early, cut what


isn’t working and protect margins wherever they can.” Te chancellor also confirmed


above-inflation increases to the national minimum wage and living wage — positive for workers but a further constraint on margins for employers already under pressure. Lisa Dickson, founder of Caseron,


a virtual accounting provider, notes that she’s felt her role as an accountant shift, and is working alongside founders to deep-dive into their numbers. “Tat might mean modest price adjustments, better role design or investing in systems that allow teams to do more with less friction.” Lisa says this looks different for a scaling business versus a lifestyle business, but planning can manage growth without stress. Abi adds: “For small, hands-on


business owners, the message is basically ‘stability over surprises’. Tere aren’t many dramatic changes, but the lack of targeted support means the pressure lingers on.”


Survival of the fittest Tis year holds hidden opportunities for agile businesses. While the budget may unexpectedly force changes, it’s also a prompt to do things differently. “Periods of pressure often expose where


businesses are leaking time, money and focus. Tis budget creates a strong incentive for founders to simplify and sharpen how their businesses operate,” says Lisa. She explains that delegation shouldn’t be a dirty word this year. Some might require additional leadership team hires, while others might focus on a transition to using AI tools. “Don’t try to absorb every rising


cost alone,” advises Abi. “Use affordable digital tools where you can.” AI platforms and integration can help a core team not only focus on value-driving tasks but also aid founders in reporting and identifying pain points. “With more technical clients, we’re already seeing how AI can be built directly into operational processes and used to accelerate new product development, strengthening margins and unlocking new growth opportunities,” Lisa notes. Firms with narrow margins must


consider how price adjustments can protect profitability without undermining demand. “Even small tweaks can make a big difference in a tight year,” Abi adds. Te uncertainly leaves some businesses in a precarious position, but this shouldn’t curb ambition, rather challenge business owners and leadership to plan for the future.


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