Business owners across the South West should resist acting on Autumn Budget rumours and instead make sure they are ready to move quickly once the detail is known, according to one of the South West’s leading accountancy firms, Milsted Langdon.

Chancellor John Healey will deliver the first Budget of Andy Burnham’s Government on Wednesday 28 October, just over three months after Mr Burnham became Prime Minister.

With very little policy leaking from the Treasury so far, advisers expect it to be one of the least predictable Budgets in recent years.

The early months of the new Government have offered some clues about its spending priorities. Mr Burnham’s first announcements focused heavily on the cost of living, including the temporary removal of VAT from household electricity bills from 1 October and a £2 cap on bus fares across England during 2027.

Pubs and live music venues have been promised a further cut to their business rates, while wider business rates reform, including changes to Small Business Rate Relief, is expected on Budget day.

The Government has also been clear about some of what won’t change. Increases to income tax and VAT rates continue to be ruled out in line with Labour’s manifesto, as has any rise in employee National Insurance.

However, Milsted Langdon says that still leaves significant scope for new tax and fiscal measures. Estimates of the Chancellor’s fiscal headroom have fallen sharply since the spring, with economists at the Resolution Foundation suggesting it could now be as little as £5-12 billion, down from the £23.6-24 billion forecast at the Spring Statement.

Capital Gains Tax and Inheritance Tax reliefs have both been the subject of intense speculation, but it is too early to tell if or how these forms of taxation could be reformed in future.

Rob Chedzoy, Tax Partner at Milsted Langdon, said: “It is natural for business owners to want to get ahead of the Autumn Budget, but acting on rumour can be a costly mistake.

“In previous years we have seen people rush to sell assets or restructure their business in anticipation of changes that never arrived.

“With so little known about the Chancellor’s current plans, the best preparation is not guesswork but readiness.”

Rob explained that this means understanding potential areas of exposure and having a clear plan in place for different Budget outcomes.

“If you are thinking about selling a business or passing on assets, now is the time to model the options so you can act quickly once the detail is published on 28 October,” he added.

“Owners should avoid rushing into asset sales in the hope of getting ahead of any Budget announcements. There are many changes to taxation that already lie ahead that are known, including further reforms to pensions and Inheritance Tax, which more people should take action on now, rather than speculating about the Chancellor’s upcoming speech.”

Milsted Langdon is encouraging businesses to use the remaining weeks before the Budget to ensure management accounts are up to date and to identify any planned decisions that could be affected by changes to capital taxes or business rates.

The firm’s tax and advisory teams will publish analysis on Budget day and will be on hand to help businesses understand what the announcements mean for them.

Rob said: “The Budget is the start of the conversation, not the end of it. Many measures will not take effect for months and the detail often matters more than the initial headline.

“Businesses that have done the groundwork now by reviewing their finances and undertaking scenario planning will be in the best position to respond with confidence once the Chancellor’s red book is available.”

To find out more about Milsted Langdon’s tax and accountancy services, please get in touch.