Anticipation is building ahead of the Autumn Budget on 26 November 2025, and uncertainty remains high regarding the impact that a harsh announcement could have on businesses. For SMEs in Northern Ireland, two areas currently under discussion are particularly significant: a possible increase in the bank corporation tax surcharge, and potential business rates reforms.
What would an increase in bank corporation tax surcharge mean for SMEs:
An increase in the bank corporation tax surcharge, currently set at 3%, is one possible consideration that has been discussed in relation to the Budget. Although this tax would not target SMEs directly, its impact could still be felt across the local business community. If banks face higher tax obligations, they may respond by tightening credit conditions, raising borrowing costs or favouring lower-risk customers for new loans.
For SMEs, many of whom rely on local banks for cashflow or growth finance, modest shifts in lending terms could have meaningful consequences. Firms are already navigating high interest rates and inflation, and further financial pressures could hinder financial stability or growth. Although recent reporting suggests that the Chancellor may resist increasing the surcharge to maintain a competitive financial services environment, SMEs would be wise to prepare for the potential fallout if such an increase was announced.
What impact could changes to business rate have on SMEs?
Businesses will be closely monitoring potential reforms to business rates. SMEs have long been frustrated at the slow pace of reforms, but updates expected this year may see smaller high-street retailers retaining certain rates discounts. These discounts are, however, expected to gradually reduce through 2026 and beyond. Larger businesses with high-value commercial premises are preparing to face potential increases.
The recent announcement by the Finance Minister in Northern Ireland to review the current rates system will be a welcome signal that Stormont recognises the importance of SMEs and the need for targeted government support to allow them to continue to grow the local economy.
Only time will tell…
SMEs in Northern Ireland are preparing for an uncertain Budget announcement. Whilst potential reforms may offer some short-term relief, ongoing speculation and uncertainty over taxes and policy continues to delay investment plans, creating a cautious economic outlook. The Budget must strike a balance between tightening financial pressures to plug the fiscal gap and giving SMEs the relief that they need to be able to grow and strive.
Expert financial advice is available:
At a time of financial uncertainty and evolving policy pressures, having the right guidance is essential. Mills Selig can support your business through upcoming financial and regulatory changes, helping you understand risks, secure opportunities and remain resilient. Our market-leading banking and finance team is equipped to advise on lending, refinancing, regulatory shifts and strategic planning.
To find out how we can help your business prepare for whatever the Autumn Budget brings, visit www.millsselig.com
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