Published: November 4, 2025 at 1:03 pm
Businesses need clarity, but all they got today was a warning shot from the Chancellor. Rachel Reeves’s refusal to rule out tax hikes throws yet more uncertainty into the mix just as small business confidence was beginning to stabilise. Talk of ‘necessary choices’ and ‘everyone doing their bit sounds like code for squeezing taxpayers, including thousands of owner-managed firms already dealing with rising costs.
If the government walks back a key manifesto pledge within 18 months of taking office, it could stall hiring, investment, and growth plans across the SME sector. Small firms can’t make long-term decisions when policy is uncertain. And with cash flow already under pressure, any increase in income tax or national insurance would hit sole traders and small company directors hardest.
A ‘Budget for growth’ cannot be built on the backs of small businesses. If the Chancellor is serious about long-term stability, she needs to support productivity by investing in the SME backbone of the economy, not by taxing it into paralysis.