Last week’s Autumn Budget gave households plenty to digest. But as someone who spends every working day alongside founders, I was listening for one thing: does it make it easier to start and grow a business here in the West Midlands? On balance, I think it does – with one caveat every business owner should know about.
More power, and money, closer to home
The Chancellor confirmed that regional mayors will keep 20% of local business rates from 2027, rising to 100% by the end of the decade, plus a share of income tax from 2028. The idea is simple: when a region grows, more of the money it raises stays there.
For the West Midlands, that should mean bigger and steadier budgets for skills, transport and business growth, decided locally rather than bid for in Whitehall. For Warwickshire, it raises an important question. The county is currently a non-constituent member of the West Midlands Combined Authority, while Coventry is a full member. With every part of England due to sit within a strategic authority by the end of 2028, where Warwickshire lands will shape how much of this new funding reaches our businesses. Our economy doesn’t stop at the Coventry boundary, and I hope the support for it won’t either.
What’s in it for start-ups and spin-outs
This is where the Budget got interesting for the people we work with:
- Young Entrepreneurs Allowance. A new pilot to cover a year of living costs for young founders while they get their idea off the ground. Details are still to come, but this could be a game-changer.
- Trading allowance tripled. Up from £1,000 to £3,000, making it simpler to test an idea on the side before going all in.
- EMI2. The Company Share Option Plan becomes EMI2, and from April 2027 each employee can hold £120,000 of options, on top of up to £250,000 under EMI. For spin-outs competing for talent, that means offering more equity rather than more cash.
- Founders’ Relief. From 6 April 2027, a 10% capital gains tax rate on up to £10 million of lifetime gains. As proposed it is narrow: around £10 million turnover, 15 full-time staff, and founders holding 25% from day one for at least five years. The consultation closes on 30 November.
- More capital, less paperwork. An extra £20.4 billion for the National Wealth Fund and British Business Bank, simpler EIS, SEIS and VCT schemes (building on the doubled EIS limits from April), the R&D Claim Notification Form scrapped from April 2027, and a new scale-up programme for women founders.
The caveat: the lifetime limit for Business Asset Disposal Relief halves to £500,000 from 6 April 2027. If you’re planning to sell in the next 18 months, please take advice now.
My message to Warwickshire founders
Much of this won’t land until April 2027, and some of the detail is still being written. That’s exactly why now is the time to plan. Whether you’re a student with an idea, a researcher eyeing a spin-out, or a young entrepreneur ready to hire, the Business Ready team can help you work out what these changes mean for you. Get in touch at business-ready.co.uk.
