Small Businesses Call for Help, Not Punishment, After UK Budget 2026

When Chancellor John Healey delivered his first Budget on 28 October 2026, it was meant to offer some relief to households and businesses facing rising costs driven by global events, especially the conflict in the Middle East. The government described the Budget as a way to give families and firms “breathing space” amid higher energy prices and economic uncertainty.

One of the key measures aimed at small businesses was raising the Small Business Rate Relief threshold. From April 2027, qualifying retail, hospitality, and leisure businesses with a rateable value up to £18,000 will pay no business rates, up from the previous £12,000. This change is expected to help about 70,000 more businesses, potentially cutting costs for many small shops, cafes, and pubs. Additionally, business rates for these sectors will be frozen in real terms for two years, and pubs, social clubs, and live music venues will get an extra 20% relief, reaching a total of 35% off their bills.

Despite these government promises, small business owners in places like Bilston expressed doubts and frustration. They say the Budget doesn’t go far enough to ease the pressures they face day to day. Rising costs like National Insurance, fuel, and energy bills are making it tough to keep profits healthy, invest, and grow.

Tom Adams, a stonemason from Worcester, explained that his business has felt squeezed by tax increases and higher employment costs. He said, “Taxation is crippling businesses. It’s getting hard to have money left in the pot to reinvest.” Others echoed this, pointing out that despite some help with rates, the overall cost of running a small business is still rising.

Fuel suppliers and transport companies also worry about fuel prices, which remain a major expense. With no easy switch to electric vehicles for many, the cost of diesel keeps businesses like AJ’s Removals under pressure. Owners want more government support to keep going and expanding.

Some business leaders also pointed out that the Budget’s focus on retail and hospitality leaves out other sectors like manufacturing and workshops, which still face high costs and uncertainty. In the West Midlands, reactions were mixed, with some welcoming the relief for high-street businesses but calling for more fundamental reforms to help all types of firms.

The government has tried to balance support with fiscal discipline, avoiding broad tax increases and trying to keep public borrowing under control. It has planned immediate help like extending the VAT cut on electricity until July 2027 and offering a £100 energy payment this winter to millions of households in England.

However, the relief for small businesses won’t fully kick in until April 2027, and many owners feel they need quicker, more direct support. The government plans to fund some of the relief measures by tightening VAT collection on online marketplaces and increasing certain taxes on big businesses.

For now, small business owners in Bilston and elsewhere are clear: they need help to thrive, not extra costs or complicated rules that feel like punishment. The Budget offers some steps in the right direction, but many say it falls short of what’s needed to keep their businesses growing and communities thriving.