With all the hype, leaks and controversy surrounding the Budget, it can be difficult for businesses to navigate the headlines and understand what it actually means for them.
In today’s increasingly challenging business environment, understanding the practical implications of the Chancellor’s announcement has never been more important.
The increase in the National Minimum Wage and the National Living Wage from April 2026, along with continued freezes on income tax and National Insurance Contribution thresholds will undoubtedly squeeze margins for businesses, including sectors key to the Cumbrian economy such as hospitality, tourism and manufacturing.
While permanent business rate relief for retail and leisure offers some respite, rising employment costs will continue to remain a headache for businesses.
The Chancellor tweaked the inheritance tax (IHT) reforms announced last year by adding a key concession: spouses can now transfer their £1 million allowance, reducing the immediate impact for some family-owned businesses and farms.
However, farming leaders argue this adjustment is still insufficient to protect multi-generational farms.
The core change to IHT remains: from April 2026, Business Property Relief (BPR) and Agricultural Property Relief (APR) will no longer offer unlimited 100% relief. Instead, the first £1 million per person qualifies for full relief, with 50% relief on anything above that.
There is real concern that these changes could lead to significant tax bills, creating pressure to sell assets or restructure ownership. Combined with frozen nil-rate bands and the inclusion of pension savings from 2027, succession planning has become a critical priority.
So what should businesses do?
Be proactive and put plans in place now. Get professional advice from your accountant and solicitor so you know exactly what needs to be done.
This could include a professional valuation of your property and assets, reviewing wills and succession plans, and exploring lifetime gifting strategies.
Whatever your sector the message is clear: plan ahead to protect your business.
- Abbie Crystal is a partner at Bendles Solicitors. Based at the Carlisle office, she supports clients across Cumbria on property sales and acquisitions, agriculture and rural matters, and landlord and tenant issues. Contact Abbie on 01228 522215 or [email protected]
