UK Chancellor John Healey has offered business leaders a new “Growth Pact” ahead of the Autumn Budget on 28 October 2026.
The message from the government is clear: invest more, innovate, train your staff, and create jobs. In return, ministers are promising greater economic stability, fewer regulatory burdens, and action on the things slowing business growth down.
But business leaders want something specific back: more tax certainty.
These talks are happening while companies deal with rising payroll costs, business rates, planning delays, and infrastructure problems. That makes the October Budget a real test of whether the government’s pro-growth message can turn into actual business confidence.
What Is the Government Offering Businesses?
The Growth Pact is built around creating a more stable environment for investment.
The government says it will maintain fiscal discipline while making it easier for businesses to expand. Planning delays, slow electricity grid connections, and heavy regulation have all been flagged as problems holding investment back.
Healey has also repeated the government’s target of cutting the administrative burden of regulation on businesses by 25% by the end of this Parliament.
For companies planning new sites, equipment, infrastructure, or expansion, faster decisions could make it easier to get projects moving.
Still, businesses are making it clear that cutting red tape alone won’t be enough.
Businesses Want More Tax Certainty
Employer costs are still one of the biggest worries.
The British Retail Consortium wants the Treasury to raise the Employer National Insurance threshold from £5,000 to £6,000. The group says current payroll costs make it harder to hire, especially for entry-level roles.
High-street businesses are also pushing for a broader overhaul of business rates.
Meanwhile, financial leaders have warned against piling more tax pressure on banks. And ministers have already ruled out an exit tax, calming fears in the wider business community about companies moving operations abroad.
Put all this together, and you can see the challenge Healey is facing.
The government wants businesses to invest and hire more. Businesses want more certainty about future tax costs before they commit to anything long-term.
What Does This Mean for UK SMEs?
This isn’t just a big-business story.
Any changes to payroll costs, business rates, investment incentives, or the wider tax system could hit SMEs just as hard.
Businesses that skip past the Budget news risk making investment or hiring calls without understanding how new measures might affect their cash flow.
Before 28 October, directors should review:
- payroll and Employer National Insurance costs
- planned investment and capital spending
- current business rates exposure
- available tax reliefs and allowances
Don’t make major financial decisions based on Budget speculation alone. Get a clear picture of where you stand now and be ready for a few different outcomes.
What Should Businesses Do Before the Budget?
Preparation beats panic here.
Look at your current tax position, employment costs, and planned spending. Flag anything that a Budget change could hit hard, whether that’s your margins or your growth plans.
That way, you’ll be ready to act the moment the Chancellor confirms the final measures.
How Lanop Can Help
At Lanop, we help businesses work out how tax and economic changes could affect their plans.
Our team can review your tax position, cash flow, payroll costs, and investment strategy before the October Budget. That gives you a clearer picture of where your business stands and what to do once new measures are announced.
The government wants businesses to invest more. Businesses want more certainty before they do. That gap makes 28 October an important date for UK business planning, and preparing early means you can make decisions with real confidence, not guesswork. Contact Lanop today to review your position ahead of the Budget.
