From property taxation and business investment to the impact on employers, landlords and the wider economy, Tunbridge Wells’ business experts give their verdict on the Chancellor’s Autumn Budget – and what it could mean for businesses and individuals in the year ahead
Deborah Richards,
Maddisons Residential
There was a welcome tone of stability in the Autumn Budget, which the property industry was certainly crying out for. Greater support was promised for first-time buyers, which is very welcome. Helping more people take that first step doesn’t just benefit one purchaser; it can unlock an entire chain and create much-needed momentum further up the market.
The concern is increased taxation on property income. If mounting costs encourage more landlords to sell, this could create buying opportunities but further restrict the supply of rental property. A healthy Tunbridge Wells market needs both: people able to buy and move, alongside a strong supply of good-quality homes for those who rent.
The Budget also offered some welcome support for smaller businesses, particularly through increased Small Business Rate Relief thresholds for qualifying retail, hospitality and leisure premises from April 2027. Supporting our independent businesses matters enormously in Tunbridge Wells. A thriving local economy helps maintain employment and confidence, both of which ultimately feed through into the strength of our property market.
Paul Fairburn,
Partner, Personal Tax and Succession, Cripps
For private individuals, the Autumn Budget was relatively quiet, but there are some important changes that business owners, investors and savers will need to consider. One of the most significant is the reduction in Business Asset Disposal Relief (BADR). From 6 April 2027, the lifetime limit will fall from £1 million to £500,000. Qualifying gains within the limit will be taxed at 18%, with gains above it subject to the 24% Capital Gains Tax rate. For those who qualify, selling or gifting shares before 6 April 2027 could save as much as £30,000.
The Budget also introduces a new Founders’ Relief, offering qualifying founders a 10% Capital Gains Tax rate on the first £10 million of gains, although eligibility will be subject to ownership, residency and business conditions. Elsewhere, property and savings income tax rates will rise by two percentage points from April 2027, while the Cash ISA allowance will remain at £20,000. There were no increases to headline Capital Gains Tax rates and no notable new Inheritance Tax announcements.
Neil Simmons, Managing Director, TN Recruits
The Chancellor’s Autumn Budget has given businesses plenty to consider, but for me, the biggest question is whether it will encourage employers to invest in their future.
The support announced for retail, hospitality and leisure is welcome, particularly for a town like Tunbridge Wells, where independent businesses play such an important role in our local economy. However, with the National Living Wage set to rise again, employers will still be weighing up the cost of running and growing their businesses.
Speaking regularly with business owners across Kent, Sussex and Surrey, I know there is no shortage of ambition. What I also recognise is how carefully decisions are now being made, whether that’s expanding a team, investing in new services or committing to longer-term plans.
And perhaps that’s where the real challenge lies. Individual measures may offer some relief, but businesses make decisions based on their overall financial position, not one announcement in isolation.
Tunbridge Wells has a strong and diverse business community, with independent enterprises and established professional firms contributing to its success. I believe the ambition to grow remains. The question is whether the economic conditions will allow businesses to turn that ambition into action.
Victoria Sampson,
Partner and Head of Corporate & Commercial, CooperBurnett LLP
As an M&A solicitor, I initially got excited about the announcement of Founders’ Relief in the Budget. However, when scratching the surface, it appears it will apply to only very specific types of trading companies and will not, unfortunately, bring back the old Entrepreneurs’ Relief. It seems to have essentially been introduced to prevent a ‘brain drain’ and encourage innovation and technology companies to remain in the UK.
The Budget also introduced more flexibility to reward key employees by refreshing the share option scheme rules that apply to businesses and qualifying employees. This is positive news for businesses looking to enhance their employee retention strategies, while also providing a boost to those considering moving into Employee Ownership Trusts.
As ever, time will tell what changes the Budget will bring to business, and what effect they will have. What I am pretty sure about is that business owners in the South East are robust, particularly agile and always resilient.
Danielle Friend, Managing Director, Create Balance Accountants
When the Chancellor announced Founders’ Relief, we all became quite excited at the prospect of something akin to the Entrepreneurs’ Relief of old. Alas, it would seem the restrictions are so narrow that the relief is unlikely to benefit many, with estimates suggesting around 600 people a year.
Business Asset Disposal Relief has also been reduced to £500,000. The 100% writing-down allowance on electric vehicles ends this tax year, reducing to just 12%, so if you’re looking to buy one, you need to act now to secure the maximum benefit.
Enterprise Management Incentives look interesting. This new scheme has the rather unimaginative name of EMI2, but is more generous. Payrolling of company benefits also becomes mandatory from 6 April 2027, so make sure you understand what needs to happen or speak to your payroll provider.
But still we fight on, hoping the goalposts don’t move yet again – or, if they do, perhaps in a direction that is more helpful!
Nick Gabay, Head of Corporate & Commercial, Thackray Williams
The Budget is a mixed offering for business owners looking to sell, and is likely to lead to a push to complete deals before next April. That’s when the Chancellor’s lower limit on Business Asset Disposal Relief (BADR) comes into effect, restricting relief to the first £500,000 of lifetime gains on sales of business assets, rather than £1 million. The value of BADR was already reduced in April 2026, when the effective rate increased from 14% to 18%, compared with a standard Capital Gains Tax rate of 24%.
On the upside, the Chancellor is introducing a new Founders’ Relief, which sounds very similar to BADR but is targeted at the original founders of businesses, rather than anyone who happens to hold a qualifying number of shares in a qualifying trading company at the time of a sale. Founders’ Relief will offer a 10% Capital Gains Tax rate on lifetime gains of up to £10 million, which was the original limit when BADR was introduced.
Adrian Whichcord, Conveyancing Partner, Thackray Williams
The Budget has brought some welcome news for first-time buyers, but additional tax burdens for landlords.
The new Your First Home scheme could significantly reduce the amount buyers need to save before purchasing and potentially lower monthly mortgage repayments. Eligible first-time buyers in England will be able to purchase a qualifying home with a deposit of just 2.5%, supported by a government-backed equity loan of up to 20% of the property’s value, which will initially be interest-free.
The new First Time Buyer ISA, replacing the Lifetime ISA scheme from April 2029, will offer a government bonus for first-time buyers, this time without a penalty for withdrawals where the purchase price exceeds certain limits, although the level of bonus will no doubt be affected.
However, the announcement of a further 2% tax on property income means landlords will face tax rates of 24%, 44% or 49% from April 2027. For a sector that has had to deal with the major changes introduced by the Renters’ Rights Act, this will be far from welcome. Some commentators believe it could lead to a further reduction in the number of private landlords in the market.
Elliot Lewis, Head of Private Client, Thackray Williams
There was welcome respite with the Chancellor confirming that Inheritance Tax (IHT) thresholds will remain unchanged until at least 2031. However, the Nil Rate Band has been unchanged since 2009 and, together with inflation and Rachel Reeves’ decision to bring pensions into the IHT net from next April, the proportion of estates affected by this tax is predicted to double to one in 11 by the end of the decade.
Two smaller, technical changes are also relevant to our clients.
With immediate effect, trustees face a tighter regime on the treatment of artificial debts, bringing the rules into line with those applying to individuals. Care will need to be taken where debts originated from assets held by either the settlor or beneficiaries to ensure the new rules are not breached.
Holdover relief will be more restricted from next April. Owners of businesses with intangible assets, such as goodwill, branding and software, will need to take advice when gifting those assets to ensure they do not inadvertently create an unexpected Capital Gains Tax bill.
Oliver Butler, Partner in the Food & Drink
Sector Team, Thomson Snell & Passmore
The Budget feels like another missed opportunity for hospitality. There were undoubtedly some welcome announcements. Increasing the Small Business Rates Relief threshold for qualifying retail, hospitality and leisure premises from £12,000 to £18,000 will make a real difference to some smaller operators, with the Government estimating that an additional 70,000 businesses across retail, hospitality and leisure will pay no business rates.
But we need to be realistic about how much of the hospitality sector this actually helps. Analysis of the 2026 rating list identifies around 108,000 hospitality premises, with a median rateable value of £24,000 for pubs, £27,500 for restaurants and £99,000 for hotels. In other words, the typical pub, restaurant and hotel already sits above the new £18,000 threshold for full relief.
And that is before considering the other side of the Budget. The National Living Wage rises by 3.9% to £13.20 an hour, there is no reduction in hospitality VAT and no change to employer National Insurance contributions was announced. For a labour-intensive industry, those costs have a huge impact.
Business rates relief is welcome, but relief that stops at an £18,000 rateable value does little for the typical restaurant, pub or hotel sitting above that level. This was an opportunity to look properly at the cumulative burden of business rates, VAT, employment taxes and rising wages, and to ask what we actually want our high streets and town centres to look like in five or ten years’ time.
Sarah Easton, Head of Real Estate, Thomson Snell & Passmore
For developers, one of the most significant Budget announcements is the decision to exempt residential brownfield developments on sites of up to 1.5 hectares in England from Biodiversity Net Gain requirements. This could reduce costs and improve the viability of smaller schemes, helping to bring more brownfield sites forward.
The commitment not to make further major changes to building regulations during the remainder of this Parliament should also provide welcome certainty for developers. Meanwhile, plans to speed up the planning system, including greater use of technology by local authorities, are positive, although sufficient resources and expertise will remain essential.
The new home-buying scheme could also boost demand, particularly for homes aimed at first-time buyers. However, the detail will be important, especially where developers are expected to contribute towards the cost. Ultimately, the success of these measures will depend on whether they make it easier and more viable to bring forward developments and deliver the homes the country needs.
