Today’s Autumn Budget brings a lot to consider, especially with proposed tax increases to employer national insurance and capital gains on the horizon.

Crucially, the true implications go beyond economics – they affect the social fabric that small businesses help weave. My concern is that this this Budget risks unravelling that very fabric.  

My mother was what we could call a “working person.” Independent of mind and spirit, she was also an entrepreneur building a life of self-employment. By running a series of small shops, she proved Napoleon’s famous criticism wrong: Britain was certainly a nation of shopkeepers, and a resilient one at that. Her mantra? “A small businessperson is their business.”  

As I reflect on the implications of the Autumn Budget statement, I am continuously reminded of her. Raising the tax burden on small independent wealth creators risks stifling the very enterprise that drives our communities. Small businesses are the heartbeat of our towns and here is why supporting them is so essential:  

1. Small businesses aren’t just numbers  

The people behind small businesses are not wealthy tax dodgers or an economic minority of our population. Think of the post offices, corner shops, cafes, and hairdressers in your neighbourhoods. Think of young tech entrepreneurs, skilled craftspeople, and small social enterprises. Over 5 million of these businesses operate in the UK, run by hardworking people who build homes, repair cars, care for elderly relatives. By providing essential services and creating local jobs, they keep our local economies running and deserve our tangible recognition.  

2. Supporting small businesses delivers big returns  

Economies that support small businesses thrive. At my own small business, Rose Regeneration, we encourage policymakers to understand the real-world impact of their decisions. Recently, we completed a study on small business lending across Ireland, which found a social return on investment of £3.32 for every £1 invested. That is a compelling return in anyone’s book.   

3. A cross-sea example: Ireland’s support for small enterprise  

Small businesses are key engines of growth, and I cannot help but look across the Irish Sea for a comparison. In the Republic of Ireland, small businesses are growing faster than in the UK. Wages are up to 10% higher, National Insurance equivalents are lower, and corporation tax is significantly reduced. Unemployment remains comparable to the UK, but it has recently ticked upwards here.  

Although not perfect, Ireland is a prime example of how a supportive financial framework can foster enterprise. The risk here in the UK is that by shifting resources away from small businesses toward an oversimplified category of “working people,” we may stifle the spirit of enterprise that builds resilient communities.   

Beyond profits: Small businesses build community  

Based on our study on social lending in Ireland, small businesses contribute far more than profit. They strengthen community bonds, encourage collaboration, foster pride in place, and empower people to shape their own economic futures. These are critical values, especially in today’s uncertain economic climate. However, if this Budget suppresses the spirit of enterprise, we risk eroding the very resilience it aims to foster…  

  

As we consider the journey ahead, I hope the true value of small businesses remains central in these conversations. What are your thoughts on this Budget and what it means for small enterprise? Do you think it strikes the right balance?