Rachel Reeves’ second Budget focused on stability, investment and renewal—but reaction is sharply split. Labour presents it as a turning point; Conservatives, led by Kemi Badenoch, warn it risks overburdening businesses without immediate support. Lenders are taking a cautious, mixed approach. Some alternative funders are already adjusting rates and LTVs—one northern manufacturer secured a six-figure growth loan—while many high street banks are waiting for clearer tax detail. Expect gradual improvement, not overnight change.
Read MoreBudget headlines may be dramatic, but lenders react to evidence—not political claims. Labour calls this Budget a reset; the Conservatives say it lacks substance; Badenoch warns SMEs will feel rising costs first. Lender behaviour reflects that mix. Some sectors are seeing confidence: a tech firm secured a flexible growth loan, and an engineering business obtained machinery funding aligned with the productivity agenda. Others face caution, from retail loan declines to construction firms asked for deeper cashflow detail. The direction is set, but lenders want proof before moving fast.
Read MoreHousing sat at the heart of Reeves’ Budget, with promises of faster planning, more land release and stronger delivery. Labour says this will unlock growth; the Conservatives warn similar pledges stalled before. Lenders are taking note, as development finance hinges on planning certainty and sector confidence. One developer recently secured funding to convert a commercial site, with their lender backing long-term demand. Another faced delays as funders waited for real proof of planning reform. Compared with 2020–22, lenders are far more selective.
Read MoreThe Budget outlined Labour’s tax direction, but many details remain unsettled. Labour argues its plan brings long-term stability, while the Conservatives warn of pressure on already-strained businesses. Lenders are reacting cautiously, adjusting models as tax shifts feed directly into cashflow and affordability. One client strengthened their asset-finance case thanks to improved allowances, securing better terms. Conversely, a consultancy paused a growth-loan application amid uncertainty over future liabilities. Historically, unclear tax policy slows borrowing, while generous reliefs unlock it.
Read MoreMany SMEs are wondering whether borrowing costs will finally ease. Labour says its Budget lays the foundations for stability and gradual rate reductions, while the Conservatives argue it falls short on tackling inflation. Lenders are equally split: some have trimmed margins slightly, others are holding firm until the Bank of England signals a clearer shift. Recent refinancing cases show mixed outcomes, and today’s cautious market contrasts sharply with 2021’s cheap credit.
Read MoreSustainability is no longer a bolt-on – it’s where capital and policy are heading. With the next Budget expected to prioritise green investment and infrastructure, businesses that align now could access better funding, stronger incentives and a real competitive edge.
Lenders are increasingly channelling capital into projects with measurable environmental impact – think energy-efficient retrofits, solar, EV charging, logistics upgrades and resilient infrastructure. For borrowers who can clearly evidence those benefits, that can mean sharper pricing, longer terms and a greater appetite to fund ambitious plans.
This article looks at how Budget-driven incentives, public-private investment and tougher sustainability reporting could reshape commercial finance – and what that means in practice for developers, operators and investors.
If you’re planning a green or infrastructure-focused project, now is the time to prepare your case, structure the right funding and position yourself at the front of the queue when new schemes and opportunities land.
Read MoreThe next UK Budget could quietly redraw the map for commercial borrowing – from how tough lenders’ criteria are to what it actually costs to raise finance. With rates still elevated, stricter affordability tests and nervous valuations, any shift in business rates, tax incentives or SME support could tip the balance between “approved” and “declined”.
This piece breaks down what the Chancellor’s decisions might mean for your funding options, refinancing plans and growth strategy – and the practical steps borrowers should be taking before Budget day to stay one step ahead.
Read MoreDiscover tailored financial solutions with Otium Partners. Our website offers insights into how our expert commercial finance brokers can streamline your funding process, saving time, reducing stress, and securing competitive rates. Explore our services, meet our team, and learn how we can support your business in achieving its financial goals.
Read MoreLooking to grow your business quickly? Bridging loans could be the key. At Otium Partners, we explore how these flexible, short-term loans can help you seize time-sensitive opportunities, manage cash flow, and support property transactions. Discover the benefits, types, and essential considerations to decide if bridging finance is right for your business.
Read MoreLooking to finance commercial property in Wales or the South West? From understanding diverse financing options and budgeting effectively, to researching the local market and ensuring legal compliance—every step counts. Discover the key considerations that could impact your investment…
Read MoreSecuring large commercial finance can be the key to unlocking major growth for your business. But navigating the complexities of loans, lenders, and terms can be daunting. In my latest blog, I outline the essential steps to position your business for success, from preparing the right financial documents to negotiating the best terms with lenders. Whether you're looking to expand, invest, or restructure, this guide will help you confidently secure the commercial finance you need. Ready to take your business to the next level? Dive into the blog to learn more!
Read MoreThe world of Commercial Finance can be daunting... understanding what commercial finance is and how to make sure you choose the right commercial finance broker is essential when running a business.
Read MoreThe changing nature of being a Property Developer…
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Read MoreAs we move through the economic cycle and the significantly increased market volatility that has led to increasing interest rates, we are all seeing an adverse impact on Bank’s stress test assumptions and covenant testing. We know that this leads to…
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