Accountancy practice Sumer Northern Ireland (NI) has welcomed measures in the UK Autumn Budget intended to support entrepreneurs, start-ups, and smaller businesses.
The firm said the package encourages new business formation and provides support for founders.
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However, it noted that higher wage costs and tax changes may put pressure on many local companies.
The government has avoided broad tax changes, focusing instead on targeted policies to support start-ups, women in technology, and small businesses seeking to grow.
Sumer NI noted that the Budget introduces founders’ relief at 10%, with a £10m ($13.4m) lifetime allowance. Capital gains tax remains unchanged.
However, the budget halves Business Asset Disposal Relief from £1m to £500,000.
The trading allowance will rise from £1,000 to £3,000. Meanwhile, the Enterprise Management Incentive limit will double, with the aim of helping smaller businesses recruit and retain staff.
Sumer NI Tax head Caroline Keenan said: “This Budget sends a positive signal that the Government remains committed to supporting businesses, entrepreneurs and founders, with a particular focus on driving investment, innovation and long-term economic growth across the UK and in Northern Ireland.
“While the reduction in Business Asset Disposal Relief from £1m to £500,000 may impact some business owners considering succession or exit plans, the wider package is focused on encouraging entrepreneurship and growth.
“Enhanced support for founders, changes to employee share schemes and measures to help businesses attract and retain talent all reinforce a pro-business approach.”
Keenan said funding for a new Northern Ireland Investment Summit will help present the region to potential investors.
She also referred to £7.5m for cybersecurity jobs and skills, which she said supports Northern Ireland’s position in technology and innovation.
“Together, these measures create opportunities for local SMEs to invest, expand and create jobs, helping businesses capitalise on a more growth-oriented environment,” Keenan added.
She further said: “The 3.5% rise in the National Minimum Wage will increase wage bills for many SMEs, while the reduction in Business Asset Disposal Relief may affect business owners planning a sale or succession.
“A collective 4% increase in tax on savings and property income will also affect those with income from these sources.
“The Budget increases Small Business Rate Relief in Great Britain from £12,000 to £18,000. However, Northern Ireland’s SMEs are still awaiting confirmation of an agreed Executive budget and the allocation of £10 million earmarked for Small Business Rate Relief will need to be actioned.”
Caroline again added: “A growing economy gives us a real opportunity to build on the stability this Budget provides.
“The Barnett consequential will be important, and the Executive must now ensure that any additional funding translates into real support on the ground, particularly the £10m earmarked for small businesses by agreeing a budget for Northern Ireland.
“Sumer NI also believes Northern Ireland’s dual market access remains a significant competitive advantage that is not yet being fully exploited. If the UK wants to stimulate more start-ups, Northern Ireland has a unique offer
“The proposed Investment Summit gives businesses and agencies the ideal platform to promote this dual access, and we look forward to working with Invest NI’s new leadership on that.”
