Rachel Reeves made history today as the UK’s first female Chancellor, unveiling a Budget with significant support measures for women in business and small business owners.
Here’s a closer look at some of the key initiatives:
For Female Founders
- Increased Funding for Women Entrepreneurs: New grants and low-interest loans aim to ease funding challenges for women-led businesses. A significant part of this initiative comes through the Invest in Women Taskforce. The taskforce is working toward a £250 million funding pool dedicated to female founders. This is a meaningful step in addressing long-standing barriers and closing the gender funding gap.
- Incentives for Flexible Working:
Businesses who offer flexible work options promoting a work culture that benefits entrepreneurs and employees alike, can expect more incentives. - Childcare Support:
Incentives for flexible working and expanded childcare subsidies help ease work-life balance, enabling women to manage both family and business demands. This support is especially valuable for women juggling growth with family responsibilities. - Support for Digital and Green Business Transitions:
Additional resources are now available to help female-led businesses adopt cutting-edge digital tools and sustainable practices. Setting them up for success in a tech-driven, eco-conscious market. This not only enhances competitiveness but also future-proofs businesses in key growth sectors. - Investment in Skills and Leadership Training:
The Budget allocates funding specifically for skills and leadership development aimed at women in business. Providing them with the tools they need to scale and sustain their ventures. This initiative is in line with findings from the Rose Review, which emphasises the need for targeted support in skills and leadership to boost female entrepreneurship. - Enhanced Support for Startups and Scaleups:
Female founders starting or scaling their businesses will benefit from enhanced tax reliefs and tailored resources, addressing both early-stage growth needs and longer-term expansion.
For Small Businesses
- National Minimum Wage & Employers’ National Insurance: From April 2025, the minimum wage is going up to £12.21, and employers’ National Insurance will rise by 1.2%. This boost in wages is a win for fair pay. But it does mean slightly higher payroll costs, which could add pressure for businesses with tight margins.
- Business Rates Relief: Good news for the retail, hospitality, and leisure sectors with business rates relief is sticking around at up to 40%. While this is a bit lower than previous years, it still offers a helpful cushion for many businesses. Some hoped for more, but it’s a step in the right direction.
- Capital Gains Tax (CGT) & Business Asset Disposal Relief: CGT rates will increase to 18% (lower) and 24% (higher) by 2025, so if you’re planning to sell assets, this could affect you. The Business Asset Disposal Relief is staying, though, with capped limits, which should help ease the tax impact on small business owners.
With these initiatives, the Budget shows a strong commitment to fostering a more inclusive business landscape. What are your thoughts—are these the kinds of measures you hoped for, or do you feel something’s missing?