Ercan Demiralay at the small business accountancy firm Wellers explains what was in (and not in) the UK government’s June Review and what matters for small business owners
On 11 June, UK Chancellor Rachel Reeves delivered her Spending Review, the second major fiscal announcement since taking office. For business leaders, the key question is simple: What does this mean for my turnover, tax obligations, and ability to grow?
While the review avoided sweeping tax changes, Reeves’ early fiscal signals have introduced a fresh layer of uncertainty. Business owners across the UK are now seeking clarity on what lies ahead, especially when it comes to planning, investment and navigating a shifting policy landscape.
Capital spending soars, routine support stalls
The government’s June Review sent a clear message: big infrastructure investment is in, everyday business support is out.
While billions are being allocated to major capital projects, particularly in sectors like transport, energy and digital infrastructure, there was little mention of ongoing funding or schemes that directly support SMEs.
For many businesses, this signals a shift in priorities. They may no longer be able to rely on longstanding support such as grants, digital tax credits or workforce training schemes to the same extent. The focus now is on large-scale, long-term investment.
What’s in the Review for business owners
Long-term projects can create business opportunities, but only if they get involved early. So let’s take a closer look at where the money’s going.
- Transport networks will receive a £15.6 billion upgrade to metro and tram systems in Manchester, Birmingham, Tyne & Wear, and beyond.
- A £2 billion AI fund bolsters a wider R&D envelope of over £22 billion annually by 2030, and £6 billion of this is dedicated to scaling high-growth ventures.
- Green energy will also be getting a £14.2 billion backing for Sizewell C in addition to wide-ranging net-zero investments.
If your business supplies the technology, engineering, construction, or energy sectors, these announcements are important signals. They suggest that future contracts may soon be available, potentially. Making contact with possible clients or partners now could help you secure work early and place your business in a stronger position when tenders open.
What’s missing – and what it means for you
Here’s what didn’t make the cut:
- No fresh small-business grants or digitalisation funding
- Flat training and skills investment
- No clear direction on Making Tax Digital or corporation tax changes (EFG International)
The absence of new support measures in the June Review sends a clear message to small and medium-sized businesses: the safety net is shrinking. Continuing to rely on a legacy scheme, whether for funding, tax relief, or training support, is becoming increasingly risky. The same applies to assumptions about ongoing protections in areas like digital taxation or access to subsidised training.
In this environment, business owners must be prepared to fund essential investments independently. It may also be time to reassess the business’s financial structure to ensure it remains resilient in the face of shifting economic policy.
Bigger signals on tax and borrowing
There were no headline tax changes in June’s Spending Review, but several important developments are happening behind the scenes. The government is preparing the ground for potential reforms to Inheritance Tax (IHT) and Capital Gains Tax (CGT), which are expected to be announced this autumn.
It has also committed to borrowing only for capital projects, such as infrastructure, rather than to fund everyday public spending. According to the Financial Times, the Office for Budget Responsibility (OBR) estimates that total borrowing during this term could reach £140 billion.
As we often advise clients: “We’re watching for tweaks to investment reliefs or capital allowances – what was available and working in 2023 could change considerably come 2026.” Now is the time to review your tax reliefs carefully and act early.
Five questions your business must ask now
In short, following the June spending review, there are five questions you should be asking.
- Labour costs and training: Will rising wages eat into profits without new apprenticeships?
- Digital tax readiness: How MTD ready are we as a business?
- Contract entry: Can we access future infrastructure/green/AI procurements?
- Tax planning clarity: Do we understand how the 2024 IHT and non-dom reform affects our succession plans?
- Forecast resilience: Are our financial assumptions overly reliant on government support or grants?
Light on headlines, heavy on impact?
The June Review may have been light on headline announcements, but that doesn’t mean business owners can afford to ignore it. In fact, the absence of new support and the subtle signals about borrowing and tax policy are just as telling.
We’re likely entering a period where government investment is targeted, not broad. SMEs need to cut through the policy background and build fiscally responsible financial strategies. It’s time to assess risk, test your forecasts and position your business for what’s next. The Review may not have handed out any new tools, but it has given us a clear direction.
Ercan Demiralay is a Partner at the small business accountancy firm Wellers
Main image courtesy of iStockPhoto.com and Andrzej Rostek