30 October 2024
by Emma SlaterThe Autumn Budget 2024 (announced yesterday, 30 October 2024) introduces the first phase of the Spending Review 2025, which sets departmental budgets for the upcoming years and outlines measures aimed at stabilising and supporting public services. With an average 4.3% annual increase in departmental spending for 2024-25 and 2025-26, the budget brings forward several updates with potential impacts across the marine sector.
British Marine has conducted an initial review, identifying key highlights most relevant to members, from tax adjustments to industry support initiatives, to help you understand the most immediate implications for your business.
Download the full Autumn Budget document HERE.
Business Tax Developments
- Business Rates Relief for Retail, Hospitality, and Leisure (RHL) Properties
For 2025-26, eligible RHL properties in England, including marine leisure properties, can expect 40% relief on their business rates liability, capped at £110,000 per business. This relief will be crucial for supporting those in need of operational cost alleviation.
- Business Rates Multipliers
In an effort to stabilise business costs, the small business rates multiplier in England will be frozen at 49.9p for 2025-26, while the standard multiplier will be adjusted to 55.5p based on the September 2024 Consumer Price Index (CPI) rate. This stability will offer financial predictability for small businesses.
- Sector-Specific Multipliers and Reform
Looking ahead to 2026-27, the government has proposed permanently lower business rates multipliers for RHL properties. This initiative is offset by a higher multiplier for properties with Rateable Values above £500,000, potentially impacting larger marine facilities. Additionally, a discussion paper has been released, inviting industry dialogue on business rates reform—a promising opportunity for British Marine members to contribute to a fairer business rates system.
- Plastic Packaging Tax
The Plastic Packaging Tax (PPT) rate will increase in line with inflation for 2025-26, encouraging businesses to incorporate recycled plastics. This is a move toward sustainability that will affect members using plastic packaging, and it highlights the government’s commitment to environmental responsibility.
Enterprise & Growth Initiatives
- Small Business Strategy Command Paper
In 2025, the government will present a Small Business Strategy, aimed at supporting small businesses with initiatives to foster thriving high streets, simplify finance access, open new markets, build capabilities, and strengthen business environments. This paper will align with upcoming Industrial and Trade Strategies, creating potential growth and resilience avenues for marine industry SMEs.
- Increased Funding for Made Smarter Programme
The Made Smarter Adoption programme, which supports small manufacturing businesses in adopting advanced digital technologies, will see its funding doubled to £16 million in 2025-26. This expansion to nine English regions promises to drive innovation, enabling businesses to streamline processes and stay competitive.
- Prompt Payment Requirement for Government Contracts
Starting October 2025, companies bidding for government contracts over £5 million per annum will need to demonstrate average payment times of 45 days or fewer to suppliers. This rule will strengthen supply chain reliability, benefiting businesses reliant on timely payments.
Personal Tax Changes
- Employer National Insurance Contributions (NICs)
From 6 April 2025, the rate of Secondary Class 1 NICs (Employer NICs) will rise from 13.8% to 15%. Additionally, the Secondary Threshold (the point at which employers become liable for NICs on employees' earnings) will be reduced from £9,100 to £5,000 per year. This lower threshold will remain in place until April 2028 and then rise in line with the Consumer Price Index (CPI). These changes are likely to impact payroll costs for employers, who should prepare for the upcoming adjustments.
- Capital Gains Tax Rates
Changes to Capital Gains Tax (CGT) rates include an increase in the main rates to 18% (lower rate) and 24% (higher rate) for disposals made on or after 30 October 2024. For Business Asset Disposal Relief and Investors' Relief, rates will rise to 14% starting from 6 April 2025 and will further increase to 18% from April 2026. These new rates will be legislated in the Finance Bill 2024-25 and may affect investment and disposal strategies within the industry.
The budget did not include any mention of additional funding for the Canal and River Trust, navigation authorities, or international trade activity support. However, British Marine will continue engaging with the Department for Business and Trade to ensure that our industry's needs are addressed as the government develops its forthcoming Trade Strategy.
British Marine will be reviewing the Autumn Budget in detail and will keep members informed of any further developments or specific areas of impact on our sector. We remain committed to advocating for policies that support our members and will continue to provide updates on how these changes may affect your business.
Members are encouraged to reach out with any questions or feedback on these recent announcements. Please contact publicaffairs@britishmarine.co.uk