Small Business

Budget 2026: 22 Founders Tell Chancellor Healey What Small Firms Need

Chancellor John Healey delivers the 2026 Autumn Budget on 28 October. Ahead of the speech, 22 founders detail their demands, from raising the £90,000 VAT threshold to cutting employer NI.

By Grace Kim

4 min read

Budget 2026: The small business measures entrepreneurs want to see - SME Magazine
Budget 2026: The small business measures entrepreneurs want to see - SME MagazinePexels / pixabay

What's News

  • Chancellor John Healey delivers the 2026 Autumn Budget on 28 October
  • 22 founders outlined small business demands ahead of the speech
  • Multiple founders want the £90,000 VAT registration threshold raised, with one suggesting £120,000
  • One founder wants the 19% small profits corporation tax rate extended from £50,000 to £250,000
  • Founders also demand a timeline for the government's e-invoicing mandate and employer NI cuts

Chancellor John Healey delivers the 2026 Autumn Budget on 28 October, and 22 founders have laid out exactly what they want from it — with the £90,000 VAT threshold emerging as the most-cited number on the list.

Kate Tynan of The Cake Business Club called the threshold's effect "crippling my business," because her non-VAT-registered clients see the levy as a 20% price hike she ends up absorbing. Amanda Stecker of Unique Cotswold Cottages wants the threshold raised to at least £120,000. "The current cliff edge actively discourages some small businesses from growing because crossing it can suddenly make them significantly less competitive," she said.

Carol Evans put it bluntly: "Cross the VAT threshold by a pound and you're adding 20% to prices or absorbing it yourself. A sliding scale would end that cliff edge."

What do founders want on tax?

The asks span the whole small-business tax system:

  • Dividend tax: Rakhee Wood of Butterfly Financial Planning wants the 19% small profits corporation tax rate extended from £50,000 to £250,000 of profits. "If we want people to take the risk of starting and growing businesses in the UK, we need a tax system that makes success feel worth it," she said.
  • Capital gains: Andy Oury of Oury Clark warned that aligning CGT with income tax "would be a disaster." He wants business asset disposal relief reinstated.
  • Reinvestment relief: Julia Hartley of Guided Outdoor Adventures and Steve Witt of Not Just Travel both want tax breaks that reward founders who reinvest profits.

Where do the founders split on growth?

Seamus Begley of The Studio of Possible wants the Budget to "stop assuming every successful small business wants to become a big business." He argues technology, AI and global talent mean small firms can now compete internationally without hiring hundreds, and wants targeted tax incentives for AI and automation investment instead of hiring incentives.

Jen Vittanuova of Jen Vittanuova Medical Aesthetics Clinics has made that choice herself. "I've employed people in the past, but the cost of employing someone now means I've chosen not to," she said.

Alan Somerfield of Apex Ideas takes the opposite route on industrial policy: "Britain doesn't have an ideas problem. It has a problem turning ideas into products, factories and exports." He wants stronger innovation tax incentives and procurement that favours innovative British SMEs.

Neil Woodcock of 51toCarbonZero wants the government to pick winning sectors, naming climate technology and clean energy, and back them with targeted incentives, patient capital and public procurement.

What about employment costs?

Employer National Insurance cuts appear on several wishlists. Sally Vickers of Banwell Antiques wants a higher Employment Allowance and proper rates relief for small shops, alongside cheaper parking and the return of tax-free shopping for overseas visitors. Malcolm Clamp of MC Accountancy argues government must "recognise that profit and cash are not the same thing" and back SME cash flow.

Martin Port of Build Concierge wants a modern Business Link-style advisory service, arguing the British Business Bank and StartUp Loans suffer limited take-up "without safety nets to protect new founders." He also says day-one unfair dismissal rights have made owners risk-averse about hiring, and wants government-funded work experience pay for 14–19-year-olds and state incentives for hiring disabled workers.

Suzanne Ekpenyong of YES Virtual Assistance wants faster Access to Work decisions: "If people are waiting months for decisions, the scheme risks failing them at the point they need it most."

Which practical fixes are on the list?

Matthew Jones of Open ECX wants a clear timeline for the government's e-invoicing mandate. "There is, in effect, a major productivity problem hiding in Britain's invoices," he said.

Katie Vale of Katie Vale Designs wants practical help with EU trade, calling post-Brexit shipping to European customers "significantly more difficult and expensive." Jayne Sibley of Sibstar wants the Invest in Women Taskforce accelerated, noting female founders "still receive a disproportionately small share of UK investment." Ellora Coupe of Her Retrofit Space CIC wants funded technical training and procurement reform in retrofit.

Fuel duty cuts feature twice — from Stephen Wales of Bespoke Pest Control and Matthew Bravery of The Yorkshire Beekeeper, who cites rural water and utility bills squeezing already tight margins.

Martin Spiller of Oakmere Partners distilled it to three demands: stability, common sense on Companies House fee hikes and PSC checks, and a chancellor who hires "someone who has experience of making payroll on a Friday after a large customer paid late."

Whether Healey answers with thresholds, reliefs or timelines, the founders' message is consistent: remove the barriers that punish growth, and they'll hire, invest and export.

Source: GN: Entrepreneurship

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Grace Kim

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Market editor covering people, launches and day-to-day practice in entrepreneurship, startups and venture funding at Business Bearings.

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