The Spending Review 2025 is in, and while major headlines cover national strategy, there’s plenty that affects our clients here in Glasgow, Ayr, and across Scotland. Whether you’re self-employed, run a limited company, or simply want to understand the impact, here’s what you should know.
Tax Compliance is Tightening
HMRC is receiving more funding to improve its digital systems and expand compliance tools. Expect more automation, fewer paper forms, and more scrutiny.
If you’re a sole trader, landlord, or self-employed, this connects directly to Making Tax Digital (MTD). Even if you’re not required to comply yet, setting up digital bookkeeping now will help you stay ahead and avoid future stress.
No Tax Cuts, But Fiscal Drag Continues
There were no changes to income tax or corporation tax rates. However, thresholds remain frozen, meaning your tax bill could still grow as your income increases. This “fiscal drag” particularly impacts directors taking dividends and self-employed professionals.
Now is a good time to review whether your tax strategy still makes sense as earnings rise.
SME Support (Mind the Gaps)
The new Small Business Investment Accelerator launches in 2026 to help early-stage businesses access funding. Glasgow is on the shortlist for the pilot, which is great for local entrepreneurs.
However, there are no new grants or direct support for sole traders in this budget. The British Business Bank gets more funding, but it focuses on long-term lending, not immediate relief.
For cost-of-living or start-up support, you’ll need to look at local councils or Scottish Government schemes, which remain under financial pressure.
We’re proud to be delivering tailored consultancy as part of Glasgow City Council’s Business Growth Programme, helping local SMEs and social enterprises thrive.
Infrastructure: Glasgow in the mix
The UK Government has committed £3 billion to infrastructure investment. While not all of it is locally allocated, Glasgow may benefit indirectly through the City Region Deal and related bids. These projects could lead to improvements in transport links, digital infrastructure, and commercial space over time.
For business owners, these upgrades won’t happen overnight. But over the coming years, they can help create a more accessible and connected environment for growth.
In Ayrshire, existing projects under the Growth Deal are set to continue, supporting regeneration across the region. However, no new expansion funding was announced in this review.
Personal Finances: Quiet Pressures
While income tax and National Insurance rates haven’t changed, the cost of living continues to rise. Energy bill support is tapering off, and NI thresholds remain frozen. So, even with stable wages, your take-home income may shrink.
Business owners who also draw salaries, as many directors do, will likely feel this double hit.
What Should You Do?
Here’s how to stay prepared:
- Review your tax position, especially if MTD or frozen thresholds affect you.
- Strengthen your digital bookkeeping now before compliance becomes mandatory.
- Explore local grants and funding via Scottish Enterprise or your council.
- Watch for new programmes like the 2026 Accelerator if you’re planning to scale.
Need help getting ready or making sense of the Spending Review 2025? We’re here to support you. Just give us a call or send us a message, we’ll help make sure you’re ready for what’s next.