Retail in Recovery: Navigating the Autumn Budget's Impact

 

 

 

Since the unveiling of the Autumn Budget, small business owners across the UK have found themselves recalibrating—some reluctantly, others with cautious optimism. It’s a time of reckoning for many who have spent years nurturing their enterprises through a landscape already pockmarked with economic uncertainty, supply chain headaches, and shifting consumer behaviours. The changes announced by Chancellor Rachel Reeves, particularly around wage increases and employers' national insurance contributions, have sent ripples through the retail community. Some are tightening their belts, while others are thinking outside the box. 

 

But amidst it all, one thing is clear: small businesses are not giving up without a fight. 

 

We're exploring how small business owners are adapting—innovating where they can, pushing back where they must, and finding resilience in unexpected places.

 

 

 

 

“Where does it leave me now?”

Christina French, 42, speaks with a mixture of passion and exhaustion. As the founder of Diverse Sparks Limited, an electrical contracting firm based in Birmingham, she’s been clocking in 18-hour days for the past 12 years. But after this latest Budget announcement, she’s contemplating something she never thought she would: selling her business.

 

“I get £500 a month—barely enough to live on,” Christina says. “I’ve always put my staff first. But now, with the minimum wage increasing to £12.21 and national insurance contributions going up to 15%, I don’t see how we carry on.” 

 

The lowering of the secondary threshold from £9,100 to £5,000 means Christina will now be paying NI contributions on more of her employees’ earnings. This, on top of inflationary pressures and rising material costs, has her deeply concerned. 

 

“We tried to raise prices in line with inflation already this year and it gave us really difficult patches. If we push them up again, we risk losing customers to sole traders who can undercut us. But if we don’t, I can’t afford to pay my team. It’s a no-win situation.” 

 

 

 

 

“I feel totally hammered”

Alan Stone, 60, who runs an antiques and secondhand jewellery shop in Basingstoke, echoes Christina’s concerns. He currently employs 13 staff and describes the Budget as a hammer blow. 

 

“There’s no relief for people like me. Increasing NI contributions feels like a punishment,” he says. “I might have to let someone go, and that’s the last thing I want. But the reality is—less staff, less work gets done.” 

 

He fears the rising tax burden will push investors away from the UK and stifle growth in local communities. “We were already dealing with decades-high taxes under the Conservatives, and now we’re being asked to absorb even more. It’s just not sustainable.” 

 

The reaction among business owners to the recent Budget changes reflects more than just financial strain—it’s an emotional and mental reckoning for many who have poured years of effort into keeping their operations afloat. Beneath the spreadsheets and statutory announcements lies a deep, personal tension: how to protect a team, stay competitive, and still earn enough to survive. 

 

What’s becoming clear is that the combination of rising employment costs and reduced financial thresholds is placing extraordinary pressure on smaller businesses, particularly those in labour-intensive industries. The increase in the national minimum wage and national insurance contributions, while designed to support workers, is having the unintended effect of squeezing employers who are already operating on slim margins. 

 

One of the most pressing retail insights is that many business owners are stuck between difficult choices. Raising prices to absorb the new costs risks losing customers to cheaper competitors, especially sole traders who operate with lower overheads. But without increasing prices, there’s simply no room left to pay staff fairly and keep the lights on. 

 

This is a classic squeeze—from both ends—and it’s creating a real sense of helplessness for some.

 

 

 

“We’re hiring – but we’re cautious”

Despite the concerns, not all stories are ones of retreat. Some businesses are taking bold steps forward—strategically. 

 

Lizzy Heyes, 39, founder of Secret Halo, a handmade jewellery brand, has turned the TikTok boom into a growth opportunity. Since launching her shop on the platform, Lizzy has seen demand surge—and is now hiring a TikTok Live presenter to showcase products in real-time. 

 

“It’s a really niche role,” Lizzy explains. “You need someone who can engage an audience, understand the brand, and also sell. It’s not your typical retail role.” 

 

While she acknowledges the impact of rising employment costs, she remains bullish. “It’s about finding smart ways to grow. Hiring the right person here could double our revenue from that channel.” 

 

 

 

A breakout year ahead?

Another positive voice is coming from Voxblock, a children’s audiobook company that’s managed to grow rapidly since launching just two years ago. With seven employees already, commercial director Wis Jantarasorn believes 2025 could be a breakout year. 

 

“We’ve got strong product-market fit and demand is growing. That means we need to grow too,” Wis says. “Of course, we’re aware that employment costs are rising, but that doesn’t stop our need for talent.” 

 

For Voxblock, the key is balance. “Strategic planning helps us manage the risks. We know higher wages and NI contributions will dent our margins, but we also know that without good people, we can’t deliver.” 

 

 

 

“We’re pausing—but planning” 

In Wiltshire, Dan and Tim Barfoot, twin founders of CMD Recruitment, are taking a more cautious approach. Having added five new staff last year, Dan says 2025 will be more about consolidation. 

 

“We’ve paused hiring for now but we’re investing in training and automation,” Dan says. “It’s about working smarter, not just bigger.” 

 

Dan sees hope on the horizon, pointing to regional economic developments like the proposed Tesla battery factory. “There’s momentum in our area. We’re making sure we’re ready to ride that wave when it comes.” 

 

Amid the noise of rising costs and policy shifts, a quieter trend is emerging—one of resilience, reinvention, and strategic optimism. While many businesses face undeniable pressure, others are meeting the moment with creativity and forward-thinking. For some, the Autumn Budget has served as a catalyst to reassess, adapt, and explore new avenues for growth.

 

What these stories tell us is that growth is still possible—even in tough conditions. The 2024 Autumn Budget may have reshaped the playing field, but for those willing to adapt and strategise, it hasn’t removed the goalposts. In fact, for some, it’s brought a sharper focus to what matters most: innovation, talent, and a clear sense of purpose.

 

Its becoming clear that even in a tighter fiscal environment, opportunity still exists. Businesses that stay focused, adaptable, and open to change are finding ways not only to weather the storm—but to chart a new course through it.

 

 

 

 

 

“Footfall is down, confidence is gone” 

In Hitchin, Hertfordshire, Charlotte McCrossin runs Gatwards—the oldest family jeweller in the UK. Her shop has been around for over 265 years, but she says times are as tough now as they’ve ever been. 

 

“Footfall’s down since the Budget. People are nervous. There’s no confidence,” she laments. “Our business rates bill jumped by £7,500, and the new NI thresholds mean even more of our staff costs are taxed.” 

 

Charlotte worries that the cumulative effect will squeeze small retail to the point of extinction. “If the High Street isn’t made viable, we’re going to lose something irreplaceable. We’ll all be pushed online—and that’s not what community is about.” 

 

 

 

 

“We’ve no choice but to raise prices” 

In hospitality, the story is similarly strained. Tom Weller, who co-owns a gastro pub and café, employs 35 people and has already seen a £40,000 increase in payroll costs following last year’s minimum wage hike. This year, he expects the same again. 

 

“There’s literally nothing else we can do,” he says. “We’ve raised prices by 5% and are planning another 5–10% increase. If we don’t, we’ll be losing money each month—and eventually we’d have to close.” 

 

Tom says the wage increases, while fair in principle, are not matched with support for small business employers. “It’s being passed on to us, and ultimately, to the customer.” 

 

 

 

“The High Street could disappear” 

Tom Hardy, town centre manager in Hitchin, paints a sobering picture. “If we don’t act, we could lose the majority of our High Streets in the next five to ten years,” he says. “Businesses can’t keep taking the hits without meaningful support.” 

 

He calls for a rethinking of what we value in our towns and cities. “It’s not just about shops. It’s about culture, community, human connection. If we let that slip away, we’ll lose more than just local trade—we’ll lose our civic soul.” 

 

This Budget has drawn a line in the sand for thousands of business owners across the UK. Some are drawing back, reevaluating, or even considering closing shop. Others are pushing forward, innovating, and making the most of the digital tools available to them. 

 

There is no one-size-fits-all response—each business is as unique as the person running it. What unites them, however, is resilience. The grit it takes to adapt, to try, to hold the line when everything from taxes to energy bills to rent is rising. 

 

If there’s a silver lining, it’s this: the story of British business is still being written. And with the right mix of policy support, community backing, and entrepreneurial spirit, there’s every reason to believe the next chapter could be brighter. 

 

 

 

“Embracing tech, not new hires” 

For many, the response to the Budget has been to retreat—not from business itself, but from expansion. According to the Federation of Small Businesses, many are choosing to embrace technology, automate processes, or limit opening hours rather than hire new staff. 

 

Suzanna Austin, who represents Bedfordshire, Cambridgeshire and Hertfordshire, says uncertainty is the prevailing sentiment. “People are holding off on growth plans. They’re retraining existing staff, changing shift patterns, anything to cut costs.” 

 

 

 

In the end, what this Budget has revealed isn’t just the financial tightrope that small businesses walk—it’s the depth of their commitment to staying upright, even when the wind changes direction. From jewellers in Hertfordshire to hospitality owners in the North, the sentiment is the same: this is hard, and getting harder. Yet time and again, we’ve seen business owners respond not with resignation, but with resolve. Whether by pivoting to new platforms, pausing to plan, or simply persevering through daily challenges, they are refusing to stand still.

 

It may not be the future they’d hoped for—but it’s one they’re determined to shape.

 

 

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