What Rachel Reeves’ Budget Really Means for UK Businesses

Rachel Reeves delivered her second Budget with an emphasis on stability, investment and economic renewal. Labour framed this as a turning point after years of unpredictability. Meanwhile, the Conservatives viewed many of the announcements as either vague or overly ambitious. Kemi Badenoch in particular argued that the Budget risks overburdening British businesses without offering enough immediate support.

This political divide reflects the reality that business owners across the UK are also split. Some feel optimistic that stability is returning. Others worry that uncertainty still lies beneath the surface, especially around tax, regulation and the speed at which promised reforms will be delivered.

From a commercial finance perspective, lenders are showing cautious interest. Stability is always welcomed, but not all lenders are moving in the same direction. High street banks are adopting a wait-and-see approach, while alternative lenders are already adjusting offer rates and loan-to-values.

For example, if a manufacturer in the North secured a six-figure growth loan shortly after the Budget. Their lender felt reassured by the Government’s commitment to boosting UK productivity and manufacturing capacity. On the other hand, a retail chain seeking a cashflow loan was told by their bank that they would not make underwriting adjustments until there was more clarity on potential tax implications.

This contrast mirrors the political divide. Labour says stability is here. Conservatives say the numbers do not yet stack up. In practice, businesses should expect improvement but not transformation.

If you would like advice on how this Budget affects your borrowing opportunities, email pa@otiumpartners.com.