The last couple of budgets weren’t particularly kind to small businesses. Was the Autumn 2026 Budget any better? And, with the answer to this question in mind, how can firms balance investment with safeguarding working capital going into 2027?

How have small businesses reacted to the 2026 Autumn Budget?

The answer, in short, is that the 2026 Budget was better for small businesses. But that doesn’t tell the whole story – far from it. While many of the measures announced by the Chancellor have been welcomed by the sector, the feeling is that he didn’t go far enough to help struggling firms facing yet another costs crisis.

Case in point, perhaps, is the changes to business rates. The major business organisations lobbied hard for significant change to the system – they argued that, yes, reform had been introduced earlier in the year, but more was needed. Well, more change is coming, with an increase in Small Business Rates Relief for small firms in retail, hospitality and leisure, but the reaction was that it should have been more widely applied.

Elsewhere, the increase in the Trading Allowance, which will help entrepreneurs, got a thumbs up, as did the decision to slow the convergence of youth rates with the National Living Wage, while there was relief that no new tax increases materialised. It should also be noted that, taking a step back, there has been recognition of the difficult global economic and geopolitical pressures that the government is facing.

However, the disappoint seems clear. Notably, the Federation of Small Businesses has said that there was nothing in the Budget to change its downbeat outlook for the small business sector. According to the body, almost 50% of small businesses expect their revenues to shrink in the short term, while firms are three times more likely to reduce headcount than increase it.

Access to finance for small firms and how alternative lenders can help

Looking at the immediate response to the 2026 Budget, it’s clear that the small business sector was hoping for more. Yes, there has been a positive reaction to many measures, but there is a widely held belief that the Chancellor has come up short in key areas. The judgement of the British Chambers of Commerce, in that small businesses won’t notice this Budget, seems to encapsulate the general reaction.

And this disappointment is hardly surprising with firms fighting significant market headwinds, which are set to pick up further in the coming months. As ever, access to finance is critical in such conditions, but small businesses face a sizeable challenge here too, with traditional banks continuing to be cautious with regard to small business lending.

What’s the solution? This is where alternative lenders can help.

Alternative lending solutions, such as invoice finance, asset finance and peer-to-peer lending, have become funding lifelines. For example, asset finance is being commonly used means for buying vehicles, machinery or equipment, while invoice finance is being employed to manage staff costs and, more broadly, to cover costs while income catches up.

Overall, by offering a more accessible, cost-effective and personalised approach to lending, these alternative finance facilities are helping small businesses navigate the current climate and target greater stability and growth.

Small business finance options for funding operations in 2027

It is easy to understand the mixed feedback to the 2026 Budget from small firms. Even acknowledging the complicated global economic landscape, businesses wanted more support to help them manage the growing pressures on revenues, margins and cashflow.

But they have what they have and looking ahead to 2027, the picture is clearer regarding help. Against this backdrop, and with traditional lender caution towards small business lending continuing, it is important 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 Steve Bowles on 01903 602211 or steve.bowles@atbusinessassociates.co.uk.