Government announced Budget 2025 measures providing tax reliefs and support to help businesses reduce costs, invest, and grow.
The UK government has unveiled Budget 2025 measures aimed at cutting costs, boosting investment, and supporting business growth on 26 November 2025.
Key business support measures include:
- Permanent lower business rates tax rates for over 750,000 retail, hospitality and leisure properties, worth nearly GBP 900m a year from April 2026.
- A GBP 4.3 billion business rates support package will cap business rates bill increases for sectors hit hardest by revaluations from April 2026.
- Film studios: The government will maintain 40% business rates relief for film studios for ten years until 2034
- Ending exploitation of the Tour Operators’ Margin Scheme by a small number of private hire vehicle operators ensuring fairness for all taxi drivers.
- Ending the low value import relief: Closing the customs arrangements that allowed some online retailers to import their goods duty free, ensuring all businesses pay equivalent tariffs.
- Gambling tax: No changes for in-person betting or horse-racing, and the government will abolish bingo duty from April 2026 – recognising the cultural value these provide for millions across the country
- Fuel duty: Extending the temporary 5p fuel duty cut for a further five months until the end of August 2026 to keep van and lorry journeys affordable. Heavy Goods Vehicles are set to save 843 next year.
- Pro-growth: Bringing in a permanent 40% First Year Allowance for main rate assets, giving businesses a strong incentive to invest in the future. The government is also keeping the GBP 1 million Annual Investment Allowance to offer immediate tax relief on plant and machinery equipment.
- Electric Vehicle support: GBP 2bn support for the EV transition and 10 year 100% business rates relief for eligible changepoints and EV-only forecourts, cutting costs for businesses. Also a one year extension to the 100% first year allowances for businesses buying zero emission cars and chargepoint infrastructure to April 2027.
The government will keep the UK’s corporation tax rate at 25%, the lowest in the G7, while introducing targeted reliefs for SMEs and high street businesses.
Fast-growing firms and entrepreneurs will benefit from expanded support, including doubled eligibility for enterprise tax incentives, a three-year stamp duty exemption for new UK listings, and a GBP 1 million Annual Investment Allowance. ISA reforms and additional investment support are expected to channel around GBP 3 billion of retail investment into UK-listed companies, boosting liquidity and competitiveness.
The measures aim to reduce costs for local businesses, unlock capital for growth, and modernise the tax system to encourage investment, benefiting SMEs, scale-ups, and firms investing in infrastructure or pursuing UK listings.
The overall aim of these measures is to lower costs for local businesses, unlock capital for growth, and modernise the tax system to encourage investment. They are designed to benefit SMEs, scale-ups, and firms investing in infrastructure or pursuing UK listings.
Earlier, Wales’ Cabinet Secretary for Finance presented the Welsh government’s 2026–2027 tax proposals on 14 October 2025, which included raising landfill disposals tax (LDT) rates while maintaining current rates for Welsh rates of income tax (WRIT) and land transaction tax (LTT).
