Businesses
UK SME Owners Put Major Life Decisions on Hold Ahead of Autumn Budget, New Research Finds
09 Oct 2026
money.co.uk survey finds 45% of small business owners are anxious about the 28 October Budget, while nearly two-thirds fear tax rises could threaten their business within a year.
9 October 2026 — Budget uncertainty is taking a growing personal and financial toll on UK small business owners, with new research from money.co.uk finding that many are delaying major life decisions while preparing for possible tax increases.
The survey of 500 UK SME owners, conducted by OnePoll between 23 September and 1 October 2026, found that 45% describe themselves as anxious or actively dreading the upcoming Autumn Budget, compared with just 22% who feel optimistic.
The findings also show that 65% are concerned a rise in business taxes could force their company to close within the next 12 months, underlining the level of uncertainty facing smaller firms ahead of Chancellor’s Budget announcement on 28 October.
Budget uncertainty is spilling into owners’ personal lives
For many business owners, concern is extending beyond company finances.
According to the research, 60% say they have experienced stress as a direct result of Budget speculation, while 23% say they have lost sleep.
More significantly, 76.8% have delayed a personal financial decision because of Budget uncertainty. These decisions include buying a home, starting a family and retirement planning.
More than a quarter, 28%, said they had delayed such decisions “many times”.
Tom Luth, CEO of money.co.uk, said:
This is bigger than business; it’s people’s lives on hold.
He added that uncertainty over possible tax changes is influencing both commercial decisions and major personal milestones.
Tax rises could feed through to prices, jobs and growth
The research suggests that if business taxes rise, many SME owners would respond quickly.
The most common action would be raising prices, cited by 57% of respondents.
A further 39% said they would pause growth or expansion plans, while 29% would stop hiring new staff. One in four would reduce headcount, and 21% would cut employee benefits or bonuses.
Only 4% said they would absorb higher costs without taking any action.
For the wider economy, those responses matter because tax policy affecting SMEs can quickly feed through into consumer prices, employment and investment.
Luth said:
If taxes rise, business owners expect to have to respond to keep their heads above water, through raising prices, pausing growth, and not taking on new staff.
Energy costs remain the biggest pressure
Despite the focus on the Budget, day-to-day operating costs remain a major concern.
Energy and utility bills were identified by 54% of SME owners as their biggest current cost pressure, ahead of wages and employer National Insurance contributions at 36%.
Business rates or commercial rent were cited by 29%, while 28% identified supply chain and raw material costs.
The results suggest that for many SMEs, Budget concerns are being layered on top of already difficult cost conditions rather than appearing in isolation.
Smallest businesses appear somewhat less affected
One of the more surprising findings is that the smallest businesses in the survey reported slightly lower levels of stress.
Among firms with 2 to 9 employees, 15% said they had lost sleep over Budget speculation, compared with 23% across all respondents.
This group was also more likely to say they had experienced neither stress nor sleep loss, at 38% compared with an average of 31%.
The data suggests that anxiety is widespread across the SME sector, but its intensity may differ depending on company size and exposure to staffing, tax and growth costs.
Business borrowing could increasingly fund survival, not only expansion
The research also asked owners about financing plans for the year ahead.
Around 40% said they would consider taking out a loan primarily to fund growth, while 32% said borrowing would be used purely for survival, including day-to-day expenses and cash-flow gaps.
Nearly a quarter, 24%, said they had no plans to take out a loan.
That split illustrates the different pressures facing UK SMEs.
For some companies, access to finance is still about expansion and investment. For others, borrowing is becoming a way to protect cash flow and maintain operations.
What SMEs want from the Chancellor
When business owners were asked to choose the single policy commitment they most wanted from the Budget, there was no overwhelming consensus.
Support with energy costs and reform of business rates were the most popular options, each selected by 17% of respondents.
A freeze or reduction in Corporation Tax followed at 14%, while 13% wanted lower employer National Insurance contributions and the same proportion prioritised better access to finance or government-backed funding.
The relatively even split highlights how varied the pressures facing SMEs have become.
For some firms, energy remains the dominant issue. For others, labour costs, taxation or access to capital matter more.
SME confidence remains fragile
The research points to a wider confidence problem ahead of the Budget.
Business owners are making decisions today based not only on existing costs, but on what they believe may happen later this month.
That uncertainty can have an economic effect before any policy is actually announced.
When owners postpone hiring, investment, home purchases or family plans, uncertainty itself begins to influence spending and growth.
The survey therefore suggests the Autumn Budget will be watched closely not simply for headline tax rates, but for whether it gives SMEs enough certainty to plan beyond the next few months.
About money.co.uk
money.co.uk is a UK digital comparison and financial services platform covering consumer and business financial products.
Its business finance service allows companies to compare funding options, including business loans, and check eligibility across available providers.
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Sara Srifi
Sara is a Software Engineering and Business student with a passion for astronomy, cultural studies, and human-centered storytelling. She explores the quiet intersections between science, identity, and imagination, reflecting on how space, art, and society shape the way we understand ourselves and the world around us. Her writing draws on curiosity and lived experience to bridge disciplines and spark dialogue across cultures.
