Chartered accounting and business advisory firm, Saffery, has revealed what the Chancellor’s Budget announcements mean for Yorkshire businesses and taxpayers.

Labour’s Autumn Budget, delivered on 26 November 2025, introduced a series of tax changes that will have far reaching consequences for households and businesses across Leeds and the wider Yorkshire region.

Chris Luckett, Tax Partner in Saffery’s Leeds office, said: “After several of weeks of speculation and rumour, businesses and individuals will welcome having certainty over their tax affairs enabling them to now make planning and investment decisions. That said, employers in the region will have to carefully manage the additional costs of minimum wage increases and salary sacrifice caps for high earners which could risk derailing investment and hiring plans that were already on hold across the country.”

From April 2026, businesses across Yorkshire face further cost pressures when the National Living Wage will rise to £12.71 per hour, and the National Minimum Wage for 18 to 20 year-olds will increase to £10.85 per hour. Looking ahead to April 2029, the government will cap National Insurance relief on salary sacrifice arrangements at the first £2,000 of pension contributions per person. These changes add to the financial strain on employers still grappling with last year’s budgetary increases.

The government has reaffirmed many of commitments in the corporation tax roadmap announced last year, including sustaining the main corporation tax rate at 25%, alongside the continuation of full expensing relief for qualifying capital expenditure on plant and machinery. However, from April 2026, the main rate of the writing-down allowance will fall from 18% to 14%. To offset this reduction, a new 40% first-year allowance will be introduced for eligible capital expenditure. This measure will primarily benefit unincorporated businesses that do not qualify for full expensing or where assets fall outside the scope of the £1 million Annual Investment Allowance which provides 100% tax relief in the year of acquisition.

In a move to support high streets, the government will permanently lower business rate multipliers for the retail, hospitality, and leisure sectors, delivering on its manifesto pledge to rebalance the business rates system. Additionally, subject to a business case, the government plans to back the West Yorkshire Combined Authority by creating the Leeds City Fund, which will include a Business Rates Retention (BRR) zone in Leeds city centre. Under this scheme, Leeds City Council will retain 100% of business rates growth above an agreed baseline for 25 years.

Chris added: “The region’s start-up ecosystem will welcome the government increasing the Enterprise Investment Scheme (EIS) limits to help them grow beyond the start-up phase. For more mature businesses the government also announced increases in the company eligibility limits for Enterprise Management Incentives (EMI) scheme permitting these businesses to offer tax-advantaged shares to the talent they need to grow.

“For families in the region there was plenty of speculation ahead of the Budget on potential tax changes for individuals, but not all of it came through. Reforms to capital taxes, and particularly inheritance tax on lifetime gifting, and changes to the capital gains tax rates or reliefs, did not materialise. That said, there were changes to income tax with increases in the rate for savings and property income from April 2027, and dividend income from April 2026 which may result in an increase in dividend payments from businesses in the short term.

“The most significant revenue raising measure, however, was the freezing of income tax thresholds until 2031 which will further extend the fiscal drag effect that has already drawn more workers into higher tax bands.

“Family run businesses in the rural economy still face significant challenges from inheritance tax reforms from the last budget, with reliefs capped from 2026. Advisers warn that time is running out for succession planning to protect value and that clients should continue to review their position and tax advice in this limited window.

“From an indirect tax perspective, businesses in the region will be impacted by the introduction of e-invoicing from April 2029. There are also some sector specific measures which include an increase in VAT due on taxi fares for private hire vehicle and taxi operators to increase from January 2026 which will no doubt increase prices for local businesses and individuals.

“Charities will welcome the introduction of a zero rate of VAT on goods donated by businesses to charities for onward distribution or delivery of their services. Another welcome announcement on social housing is HMRC will consult on potential VAT changes to expand the zero-rate of VAT which would encourage and accelerate the construction of social housing across Yorkshire.”

Saffery has had a base in Yorkshire since 1992 and the firm moved its 84-strong Yorkshire team will into Leeds last year, with the team now located at Wellington Place.

Saffery was established in 1855 making it one of the UK’s longest-standing independent accounting firms. Today it employs more than 1,200 people across nine UK offices.