What does the Autumn Budget mean for Scottish businesses?

After months of anticipation peppered by leaks and half-announcements, the Autumn Budget finally rolled around.

The leak of the OBR report signalled one final bit of chaos to set the mood for the budget that had been the cause of anxiety for many business owners.

We have been charting the struggles facing growth and sustainability that Scottish business owners have been enduring for quite some time now.

The question remains as to whether the Autumn Budget does enough, or anything, to remove these barriers and get businesses growing again.

Will the Autumn Budget help businesses grow?

The short answer seems to be a resounding no.

We recently wrote about the costs that were threatening to cause contraction in nearly a third of Scottish businesses over the next twelve months.

For business owners already looking at a bleak future, the budget may be the death knell they were dreading.

The increases to the National Minimum Wage (NMW) and National Living Wage (NLW) will see employee expenses increase even more.

From 1 April 2026, the rates will increase as follows

National Living Wage – £12.71 per hour (up 4.1 per cent)
National Minimum Wage for 18-20 year olds – £10.85 (up 8.5 per cent)
National Minimum Wage for 16-17 year olds and apprentices – £8.00 per hour (up 6 per cent)

This will see employer National Insurance Contributions (NICs) increase while those same workers struggle under the yoke of employee NICs and will find themselves paying more Income Tax.

If you pay above NLW, you may still need to review your wages as a full-time worker earning NLW will be on an annual salary of £26,436.80.

It is not unreasonable for other employees to expect their wages to increase to remain distinctly above NLW, particularly if those workers are graduates who expect their expertise to be rewarded.

It seems the hope from the Chancellor is to push an ever-increasing number of people above both the Personal Allowance threshold and the Higher Rate threshold using fiscal drag.

This is a way of getting more Income Tax without officially increasing it and means that business owners are left footing the bill.

The only reprieve for business owners in this situation comes in the form of lower retail, hospitality and leisure multipliers that are designed to rebalance the business rates system.

For businesses outside of these sectors, it may be more challenging to keep pace with the increasing costs.

Is there any help for Scottish businesses in the Autumn Budget?

As mentioned, the support that is being offered to businesses is largely dependent on the sector they work in.

There is a focus on trying to get the high streets back to life by making business rates lower for retail, hospitality and leisure businesses.

For smaller businesses that are bold enough to start trading in the current economic climate, the British Business Bank’s Investment Fund for Scotland is being topped up with some extra funds.

£25 million is being put into the pot to help fledgling companies find their feet, but it can only be accessed within the first 18 months of trading.

This will be of little comfort to existing businesses that are struggling under pressure.

We are working to support Scottish businesses as they adapt to the changes brought about by the Autumn Budget.

We understand that the coming months and years will bring new challenges and seeking professional support early is the best way to mitigate the impact of rising costs.

We can help with tax planning and business strategies, all provided with the community focus you have come to expect from us.