The 2025 Autumn Budget is still a month away, but fear among small businesses about what it might bring is growing ever stronger. What do firms want to see and what do they not? And how can they afford essential investment whatever happens?

What are small firms’ big fears for Budget 2025?

As Budget day gets nearer so small firm concerns about what the Chancellor has in store for the sector continue to mount. Such sentiment is indicative of the state of the sector and the fragility of small business confidence (with many claiming to be one more major cost increase away from collapse), and underlines the importance of the announcements to the immediate future of these firms.

What are small businesses’ greatest fears? Unsurprisingly, further tax rises tops the list. According to research from Novuna Business Finance, the likelihood of another rise in national insurance contributions is the leading concern, followed by increases in VAT, income tax and fuel duty. A hike in tax on pensions and capital gains tax, and the introduction of a new wealth tax are also on the list.

Aside from tax-related worries, other key fears include an increase in minimum pay for low earners, the expansion of leave and statutory sick pay provisions, a reduction in the VAT registration threshold for small firms and a ban on zero-hours contracts. If some of the concerns don’t reflect particularly well on the sector, such feeling is surely more a reflection of the acute conditions firms are facing.

Business rates also continues to be a hot topic of discussion, with the removal of business rates relief for small firms another major concern – with many lobbying for a complete overhaul of system and the creation of a new framework that provides fairer conditions for small businesses.

How alternative finance can help fund essential investment?

Is this a make-or-break Budget for small businesses? It certainly feels increasingly so, but at the same time, it is important not to get caught up in the hype. Nevertheless, small firms are in a precarious position and it is clear that they need support, not least because their health, investment and growth is vital to wider economic revival.

So, how can small businesses manage the costs of essential investment despite market conditions and whatever measures are announced in the Budget? This is where alternative finance can help.

Small business lending from traditional sources remains subdued in Q4 2025, with almost 40% of firms finding accessing affordable finance one of their biggest challenges. Against this backdrop, services such as invoice finance, asset finance and peer-to-peer lending are proving a vital source of capital for small businesses in the current funding climate.

These alternative finance facilities, which offer a more easily accessible, affordable and personalised approach to lending, are helping small businesses survive and target recovery, stability and growth.

Notably, the Growth Guarantee Scheme is providing a wide range of finance facilities to smaller firms, including asset finance, invoice finance and asset-based lending. This is further proof that alternative lenders are increasing filling the small business funding gap.

Finance options for vital small firm investment?

It is impossible to know what will be in the Autumn Budget until the announcements are made on the day, but increasingly fevered speculation is a clear indicator of the pressure that the small business sector is under. How the Chancellor addresses this issue remains to be seen.

Regardless of what happens in late November, small business investment in development is essential and it is important that firms are able to manage these costs while safeguarding cash flow. Access to finance is critical. This is why it is vital that key decision-makers are aware of all the finance options available to them, including the services of alternative lenders.

To find out more about A&T Business Associates services, contact Tony Hedger on 01903 602211 or tony.hedger@atbusinessassociates.co.uk.