The Autumn Budget landed today, and let’s be honest, many of us were watching through our fingers. It’s always a nervous wait to find out what’s changing, what’s staying the same and what it all means for businesses already juggling rising costs, tight margins and a busy festive season.
So we asked Interim Chair, John, for his take on the key announcements, what they mean in real terms, and how they may impact floristry businesses across the UK.
Over to John…
Hello all. We all have unique businesses and personal situations, so I’ll focus on the points most likely to affect us collectively.
Diving straight in, we can’t ignore the headline from the Chancellor, Rachel Reeves: “ordinary people will have to pay a little bit more.” But what does that really mean?
Tax
Key changes include:
- Personal allowance, higher-rate, and additional-rate thresholds are frozen until April 2031.
- This means that as wages rise, more people will pay tax or move into higher tax bands. This affects both employees and the self-employed.
- To give context: five years ago, the minimum wage was £8.72; today it stands at £12.21, with another increase due in 2026 — a rise of over 40%. Average salaries have grown by more than 31% over the same period.
- Impact: Freezing tax thresholds will reduce take-home pay for many, as more of us are pushed into higher tax bands over the next five and a half years. Importantly, remember that only the portion of income above the threshold is taxed at the higher rate, not your entire salary.
Other considerations:
- The current tax-free allowance of £12,570 is frozen until April 2028, so there’s no relief there.
- Actual tax rates haven’t changed, so while your rate stays the same, more of your income could be taxed as you earn more.
Wage Costs
Alongside tax changes, there are increases to the National Minimum Wage:
- Workers aged 21+: up 4.1%, from £12.21 to £12.71
- Workers aged 18–20: up 8.5%, from £10.00 to £10.85
- 16–17-year-olds and qualifying apprentices: up 6.0%, from £7.55 to £8.00
For employees, this is a positive step. However, as the saying goes, what the government gives with one hand, it takes with the other — the freeze to tax thresholds proves this.
For businesses, rising wage costs are a bigger challenge. In my business, employment costs are a real concern. Larger companies may turn to automation to offset these increases, potentially affecting employment rates.
An interesting point: the larger increase for 18–20-year-olds stems from a government drive to end discriminatory age bands and move toward a single adult pay rate. This suggests that lower age rates may eventually align with adult rates and while I personally believe skill should be the factor in rate of pay and not age it is another cost businesses will need to plan for.
Limited Companies
Limited companies, once mostly the domain of larger businesses, are now common among retail florists for various reasons.
What this means:
- Increased wages are harder to absorb. Remember, the cost of employment includes employer taxes, pensions, NI contributions, etc.
- While higher costs reduce corporation tax, this only applies if the business is profitable in the first place. Corporation tax rates themselves remain unchanged.
- The rate at which directors withdraw money via dividends has increased by 2% for basic and higher thresholds. Many retail florists draw their salaries as dividends, so this change directly impacts personal take-home pay.
Summary
The 2025 Budget makes it clear that both individuals and businesses will feel the effects of frozen tax thresholds and rising wage costs. While employees benefit from higher minimum wages, businesses face growing pressures, especially smaller operations. Limited companies, in particular, will need to carefully manage employment costs and dividend withdrawals to maintain profitability.
The above is only a light touch reaction to the budget and if anyone has more in depth questions I am here to help but in short, the Budget reminds us that thoughtful financial planning has never been more important. By understanding the key changes and planning ahead, we can navigate these challenges successfully — protecting both our businesses and personal finances as we move into 2026.
Wishing you all the success that your hard work deserves.
John Davidson FMAAT
Interim Chair
If today’s Autumn Budget announcements have left you with questions or concerns please remember you’re not on your own. We’re here to help and support you. Feel free to email info@britishfloristassociation.org or call 0344 8007299 and we’ll do our best to help or point you towards the right expert advice.
There are also many trusted organisations ready to support florists, whatever your business size or structure:
Perennial
The charity for people working in horticulture and floristry. They can help with financial worries, wellbeing, family support and practical advice during challenging times. Find out more
HR:4UK
Our BFA HR partner, here to help with staffing questions, contracts, wage changes and employment concerns. BFA members can access a free 10-minute advice call. Find out more
Gov.uk Business Guidance
Clear, official summaries of tax, VAT, NI and Budget changes as they’re confirmed. https://www.gov.uk/
ACAS
Impartial support on employment rights, minimum wage updates, staffing changes and HR best practice. https://www.acas.org.uk/
HMRC
For updates on VAT thresholds, Making Tax Digital, National Insurance and tax changes that may affect your business. https://www.gov.uk/government/organisations/hm-revenue-customs
Fresh Produce Consortium (FPC)
Particularly helpful for wholesalers, importers and florists who source internationally, offering guidance on customs, logistics and regulatory changes. https://freshproduce.org.uk/
DEFRA
For updates on plant movement, border requirements and regulatory changes affecting those who import flowers. https://www.gov.uk/government/organisations/department-for-environment-food-rural-affairs
Federation of Small Businesses (FSB)
Excellent for small business summaries, simplified breakdowns of Budget impacts, and ongoing commentary on VAT, business rates and taxation. https://www.fsb.org.uk/
Local Chambers of Commerce
A great place to access local business support, post-Budget briefing sessions and free advice on growth, planning and compliance. https://www.britishchambers.org.uk/find-a-chamber/
Our Industry Partners
From reducing fuel costs to accounting software, our partners can offer both support and discounts to make the running of your business a little bit easier.
The BFA will continue to keep you informed, advocate for you and support our industry to navigate the changes ahead.
