This week, Chancellor of the Exchequer Rachel Reeves delivered Labour’s Autumn Budget update, which introduced some key changes which could impact small businesses across Wales.
This Budget reflects the difficult balancing act the government faces between stimulating growth and repairing the public finances. Entrepreneurs and small businesses are being looked to as a key driver of future growth, at a time when pressures on founders remain very real.
We welcome the continued commitment to the Enterprise Investment Scheme (EIS) as a vital source of early-stage equity, alongside the maintenance of first-year writing-down allowances, which continue to support business investment. These measures remain important for founders seeking to access capital, invest in equipment and grow sustainably.
However, the real test of this Budget will be how national funding translates into practical, place-based support on the ground. High-quality, accessible business support is often the difference between an idea becoming a viable enterprise or not – particularly in communities facing structural economic challenges.
In Wales, the additional £500m for the Welsh Government, alongside devolved growth funding and regional investment pots, presents a significant opportunity. Programmes aligned to Pride in Place, the Local Growth Fund and the Cardiff Capital Region (CCR) will be critical in determining whether this investment delivers visible regeneration, inclusive entrepreneurship and long-term economic resilience in our town centres and communities.
From a day-to-day founder perspective, business owners such as ICE members will feel this Budget in very practical ways:
- Business rates relief is easing pressure for some retail, hospitality and leisure businesses
- Free apprenticeships for SMEs, creating new opportunities to grow teams
- Higher wage costs are affecting margins and cash flow.
- Rising dividend taxes are impacting owner-managed businesses directly
- Changes to pension salary sacrifice and compliance rules are adding to the administrative burden
- And continued pressure on households, potentially affecting customer demand
Alongside this, rising dividend taxation, changes to pension salary sacrifice and increasing compliance requirements will influence investment, hiring and planning decisions for many owner-managed businesses. It is the combined weight of these changes, rather than any single measure, that founders will feel most significantly.
For small and micro businesses, what matters most now is confidence, clarity and stability.
The coming months will be critical in demonstrating whether this Budget delivers the joined-up, locally delivered business support that founders need to take risks, invest and create jobs locally.
What This Means for Welsh ICE Founders Over the Next 6-12 Months
You’ll have seen a lot of noise this week about the new Autumn Budget and what it could mean for you and your business. But it’s a lot to wade through, and in our opinion, nothing beats a really good chat. Here are some of the practical ways you can get advice and support on what this Budget means, from Welsh ICE:
In December, we’ll be supercharging our fully funded Meet the Experts sessions in both Caerphilly and Newport. This means you can pop along for a 121 chat with bookkeepers, grant experts, and HR advisors for some bespoke advice.
- 11th of December, Meet The Experts: 2025 Budget & Business Essentials 121s with Steve Platts in Newport
- 17th of December, Meet The Experts: 2025 Budget & Business Essentials 121s with Steve Platts in Caerphilly
In January, we’ll be hosting a practical workshop on ‘Future-Proofing Your Finances: Navigating Dividend Tax, Wage Costs, and Accessing New Regional Growth Funds’.
Additionally, we’ll be bringing together financial experts in the new year for a special Business Support Fair, so keep an eye out for that 👀
Welsh ICE stands ready to work with councils, regional partners and government to ensure that every pound of place-based investment delivers for the people actually taking the risk on the ground – founders, small businesses and local communities.
