Chancellor John Healey’s October 28 Budget offered targeted relief for high street businesses and fresh incentives for entrepreneurs. But across the small business community, the response was tempered by a familiar concern: whether established employers will gain enough confidence to recruit, invest and grow.

Business rates support, help with energy costs and a more generous trading allowance were welcomed. Yet contributors highlighted continuing pressure from wages, employer National Insurance, finance costs and regulation.

Warren Dickson, CEO – Commercial and Schemes at Howden, captured that balance: “Any immediate relief will help, but SMEs also need greater certainty over costs so they can plan, invest and grow.”

ACCA’s chief economist Jonathan Ashworth described it as the “‘do no harm’ budget” generally expected. Its UK director, Abdul Goffar, questioned whether the immediate measures would sufficiently improve confidence, adding: “Tax reform should simplify the system – rather than add another layer of complexity.”

For qualifying retail, hospitality and leisure premises in England, the threshold for full Small Business Rate Relief will rise from £12,000 to £18,000, with relief tapering to zero at £21,000. The higher thresholds will apply until March 2029.

However, the targeted approach left other businesses asking where they fitted into the growth agenda.

John Nelson, managing director of eCapital UK, said: “Growth must also be possible for the established businesses that underpin our regional economies.”

Romesh Jeyaseelanayagam, who runs The FD Consultant, similarly identified the profitable, owner-managed SME “steady middle” as largely overlooked.

Emma Carter, CEO of WestSpring IT, said: “Businesses need enough confidence and headroom to invest in their people, technology and future. I’m not convinced this Budget gives them enough of either.”

Access to finance remains crucial. Rob Keown-Boyd, CEO at multifi, warned that the measures would not resolve the cashflow pressures preventing investment.

“Action now also must go beyond politicians and it’s important that the lending sector provides transparent, fast, and simple working capital,” he said.

For employers, the central calculation remains the cost of taking on another person. The National Living Wage will increase by 3.9% to £13.21 an hour from April 2027.

Patrick Brodie, partner and head of Employment, Engagement & Equality at RPC, suggested the smaller

increase compared with previous years “may strike the right balance between employer finances and the cost of living pressures for the lowest paid workers”. However, he warned that employment reforms would bring additional compliance costs.

Maxine Bligh, interim chief executive of the Recruitment and Employment Confederation, was more critical: “The Chancellor has failed to hit the bullseye on business confidence to hire today.”

Rachel Bedgood, CEO of screening company CBS, explained: “Recruitment decisions are influenced by much more than whether there’s demand for their services.”

For Maria McCallum, joint managing director of The Electrical Compliance Collective, those pressures sit alongside investment in larger premises and apprentice training facilities.

“But ambition alone doesn’t pay the bills,” she said. “If the Government wants businesses like ours to create jobs and train young people, it needs to make employing people more affordable, not more expensive.”

Ann Watson MBE, CEO of Enginuity Group, said its latest Snapshot Survey found 80% of engineering and manufacturing SMEs faced pressure to raise prices because of labour and raw material costs. She welcomed energy support but called for targeted incentives for training.

Andrew Wilkinson, of Secure Safety Solutions, wanted help with qualification costs, paid work experience and mentoring. Fiona Da Silva Adams, who runs Revolution Performing Arts, stressed the value of younger employees: “The young people we employ are not a cheaper option.”

Entrepreneurs received a substantial change through proposed Founders’ Relief. From April 2027, qualifying disposals will attract a 10% Capital Gains Tax rate on up to £10 million of lifetime gains. Eligibility conditions for founders and significant early investors in high-growth, innovative UK companies are subject to consultation.

Richard Baker, founder and CEO of Tokenovate, welcomed the incentive but called for better access to growth capital and regulatory certainty to keep successful companies in Britain.

Alongside this, the lifetime limit for Business Asset Disposal Relief will fall from £1 million to £500,000 from April 2027.

Elsa Littlewood, tax partner at BDO, described Founders’ Relief as a “hugely positive signal”, while warning that the BADR reduction would disappoint entrepreneurs whose financial plans assumed the higher threshold.

Harry Walker, partner at DSW Corporate Finance, said its impact would depend on “how widely the relief will apply”.

Smaller ventures will benefit from the trading allowance increasing from £1,000 to £3,000, alongside a new Young Entrepreneurs Allowance. Practical help includes extending electricity VAT relief and maintaining the higher 55p tax-free mileage rate.

Dan Sullivan, vice president, Mid-Market Sales at SEFE Energy UK, welcomed targeted electricity support but urged a longer-term focus on energy’s role in competitiveness.

The delivery of wider reforms will also matter. Emma Swan, head of the Commercial Division at Forbes Solicitors, welcomed the commitment to save businesses £800 million through reduced administrative burdens, but said clear guidance was essential before firms could assess the benefits.

She also welcomed moves towards a Lancashire mayor, highlighting opportunities for local investment. ACCA’s strategic engagement lead, Gemma Gathercole, cautioned: “Moving responsibility without building capacity risks creating more complexity, rather than reducing it.”

Tax administration requires similar attention. Glenn Collins, ACCA’s head of Technical and Strategic Engagement, welcomed investment in HMRC but called for better systems, staff capacity and timely guidance for taxpayers and advisers.

Technology offers another route to growth, provided investment produces practical returns. Jake Rickhuss, managing director (Commercial) and co-founder of technology partner Journi, welcomed support for entrepreneurs and AI adoption, while questioning inefficient computing use.

“If we’re going to invest billions in AI infrastructure, we should be just as serious about reducing unnecessary AI consumption and making sure that investment delivers real business value,” he said.

For Julianne Ponan MBE, CEO of Creative Nature, the broader test remains straightforward: “Small businesses don’t expect the government to remove every challenge, but we do need stability, predictability and a fair environment in which to operate.”

The Budget offers immediate relief to some businesses. Turning that into sustained growth will depend on whether employers can afford their next recruit, secure working capital and invest with confidence.