All SME eyes will be on the Autumn Budget 2026 – less than a month away now – not least as another energy crisis looms. What can small businesses expect on October 28th and how can they access the finance to manage the pressure on working capital?

What do smaller firms want from the 2026 Autumn Budget?

The Federation for Small Businesses (FSB) has called for the Chancellor to give smaller companies breathing space in the Autumn Budget, a position that reflects the challenging market environment that they are facing. Taxes are, unsurprisingly, a key focus for the organisation.

The government has previously committed to not increasing income tax, VAT and national insurance, and there is little to suggest that it will break this promise. Indeed, it may well build on the measure to cut VAT on electricity bills from 5% to 0%, which comes into force on 1 October. Some small businesses already qualify for the reduced household rate and expanding coverage would certainly help firms.

Business rates is another hot topic and the FSB wants the Chancellor to up the threshold for 100% Small Business Rate Relief to a rateable value of £25,000. It claims that such a move would mean that around 250,000 businesses would stop having to pay rates. However, whether the government goes down this road remains to be seen, especially as extra relief has already been put in place for 2026-27.

The FSB is also lobbying for a reduction in employment taxes for small businesses, the implementation of a statutory sick pay rebate for smaller firms and a hike in the VAT registration threshold to £100,000. In addition, the organisation wants the government to cancel recent increases in Business Asset Disposal Relief.

How alternative finance can help with safeguarding working capital

The focus on breathing space for small businesses in Autumn Budget 2026, from the FSB and others, is hardly surprising given the prolonged headwinds that firms are having to endure. The prospect of yet more pressure on cash flow from further rises in energy prices only makes the case stronger.

However, given the global geopolitical conditions and their impact on the economy, it remains to be seen what the Chancellor will do at the end of October. Whatever happens, it is clear that accessing finance will be crucial to small business survival and development. At a time when traditional banks remain cautious with regard to small business lending, this is where alternative lenders can help.

In response to the squeeze on lending, alternative finance has become into a vital lifeline for small firms. Solutions such as invoice finance, asset finance and peer-to-peer lending are filling the funding gap, offering speed, affordability and tailored support.

Notably, the Growth Guarantee Scheme is providing a wide range of finance facilities to smaller firms, including invoice finance, and there has been calls for the initiative to be expanded significantly to help smaller businesses struggling to access finance. Such development offers further proof that alternative lenders are increasing filling the small business funding gap.

Small business options for financing investment in Q4 and beyond

The lobbying for more help for small businesses is a familiar refrain at Budget time, but the need for such assistance seems particularly pressing this autumn given the likelihood of a fresh spike in energy prices putting further pressure on working capital.

Regardless of what measures are announced in the Autumn Budget 2026, access to finance remains critical for small businesses. As such, against the backdrop of continued caution from traditional lenders, it is important that key decision-makers are aware of all the available finance options, including alternative finance facilities.

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