Autumn Budget 2025: What It Means for Your 2026 Marketing Budget
The Autumn Budget 2025 was delivered by Chancellor Rachel Reeves on 26 November. For small businesses, the headlines are rising wage costs from April 2026 and changes to business rates. If you are wondering how this affects your plans for next year, including your marketing, this post is for you.
This is not tax advice. Speak to your accountant about your own figures. But here is what the key changes mean in practical terms.
The key changes for small businesses
Wage rises from April 2026
The National Living Wage for workers aged 21 and over will rise to £12.71 an hour from April 2026. That is a 50p increase. The rate for 18 to 20 year olds rises to £10.85, and the rate for under 18s and apprentices rises to £8.00.
For businesses with a young workforce, such as cafés, restaurants, bars and shops, the increase will be noticeable.
Business rates for retail, hospitality and leisure
The Budget confirmed lower business rates multipliers for retail, hospitality and leisure properties from 2026. The exact effect depends on your rateable value, so check with your accountant or local council.
Apprenticeships
The government also announced that apprenticeship training for under 25s at small and medium sized businesses will be fully funded from April 2026. If you have been thinking about taking on an apprentice, this could be worth exploring.
Should you cut your marketing budget?
When costs go up, marketing is often the first thing businesses cut. It feels like an easy saving. But cutting marketing completely usually means fewer new customers, which makes the rising costs harder to cover.
A better approach is to make every pound work harder. Here is how.
Five ways to get more from your 2026 marketing budget
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- Focus on the free channels first – Your Google Business Profile, email list and organic social media cost time rather than money. Make sure these are working well before spending on paid adverts.
- Stop what is not working – Look back at 2025. Which activities brought in customers? Which did not? Cancel the adverts, directories and subscriptions that did not deliver.
- Invest in your website – Your website works for you every hour of the day. A fast, clear website that ranks on Google keeps bringing in enquiries long after you have paid for it. Unlike paid adverts, it does not stop the moment you stop paying.
- Look after existing customers – It is usually cheaper to keep a customer than to find a new one. Loyalty offers, regular emails and simple thank you messages keep people coming back.
- Plan around your busy seasons – Put more budget into the weeks that matter most for your business. For restaurants that might be Valentine’s Day, Mother’s Day and Christmas. For trades it might be spring and early autumn.
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A simple way to set your budget
Many small businesses spend somewhere between 3% and 10% of turnover on marketing. Newer businesses trying to grow often spend more. Established businesses with a loyal customer base may spend less.
Pick a figure, split it by month and review it every quarter. A plan you actually follow is far better than a perfect plan you never look at.
Get ready now, not in April
The changes take effect in April 2026. That gives you four months to plan. Use December and January to review your costs and set a marketing plan that fits.
Frequently asked questions
When was the Autumn Budget 2025?
The Autumn Budget 2025 was delivered on Wednesday 26 November 2025.
What will the National Living Wage be in April 2026?
From April 2026 the National Living Wage for workers aged 21 and over rises to £12.71 per hour.
How much should a small business spend on marketing?
Many small businesses spend between 3% and 10% of turnover. The right figure depends on your growth goals and how established you are.
Talk to KIVEIN
Want help building a marketing plan that fits your 2026 budget? KIVEIN works with small businesses across Wolverhampton, Cannock and Staffordshire. Get a free quote today.