A Budget for Uncertain Times: Key Takeaways for SMEs, PR Firms and the UK Economy

The Budget last week left a few people scratching their heads; there was a lot to take in and some interesting approaches to tax and pensions to balance the books with measures targeted at growth to help businesses and support enterprise.

With the many leaks in the run up to the Budget, and then the accidental publishing of the Chancellor’s full Budget on the website by the Office for Budget Responsibility (OBR) some might have missed that the Chancellor has downgraded the UK economic growth forecasts for 2026 to 1.4%, below a previous forecast of 1.9%. This changes the goalposts somewhat and likely reflects changing expectations.

The measures contained in the Budget are very much designed to increase the governments headroom so it can manoeuvre if needed, and had some innovative ways to encourage a change in behaviour intended to fuel growth.

The Chancellor’s approach aims to target growth through controlling household inflation in household spending with measures to bring down the material impact on households. In practical terms this has been done by freezing rail fares, introducing an energy bills package and adding in a fuel duty freeze extension, which all go towards helping keep Consumer Price Index (CPI) down in household spending.  

As our members know, weak growth this year has had serious implications for businesses across the UK and has stifled growth. However, with minimum wages set to increase again, businesses must shouldering the cost, which could potentially result in hiring freezes or job cuts.  

PR and Communications sector

Several of the measures introduced yesterday look to target growth and are designed to have a meaningfully affect for the PR and communications industry, particularly SMEs and talent development. 

The apprenticeship funding is particularly significant for our industry because it relies heavily on developing talent and SMEs form the backbone of our sector. The business rates support programme will provide relief to agencies facing rising operational costs, while the share options tax relief could help smaller firms attract and retain skilled professionals in a competitive talent market. However, the broader economic uncertainty and potential for hiring freezes across might impact demand for PR and communications services in the short term.

The focus on growth and business competitiveness does signal government recognition of the need to support the professional services sector that underpins the UK economy. 

Support for Businesses 

Several business-focused initiatives, particularly funding for apprenticeships in small and medium enterprises (SMEs) provide a much-needed boost. This will give employers the flexibility to select training and qualifications that align with their workforce needs and will enable access to funding to do this.

After years of significant challenges, it’s hoped that businesses will benefit from the focus on enterprise support. Notable measures include tax relief on share options for small businesses and a business rates support package. From April 2026, this package will cap business rates increases for sectors most affected by revaluations, alongside a consultation on making business rates fairer for small businesses. 

In addition to this, ahead of the Budget, an eight-week consultation was launched on the British Industrial Competitiveness Scheme. This scheme will examine ways to reduce electricity costs for businesses through adjusted business rates multipliers.