What small businesses need to know about government policy this autumn

The next few months will bring a wave of policy changes that affect how small businesses hire, pay, trade and comply.

To save you time, we've pulled together a clear guide on the key developments, when they take effect and what practical steps you may want to take.

September and October 2025

Employment rights

The Employment Rights Bill is expected to receive Royal Assent this autumn. The government has outlined a roadmap for implementing the Bill, with measures phasing in across 2025 and 2026.

These include:

• day-one rights to unfair dismissal claims

• changes to sick pay

• stronger enforcement

• wider access to flexible working

What to do: It's worth reviewing your contracts, probation policies and dismissal procedures now (so you aren't caught off guard) and training managers on the new rules.

Tackling late payment

The Department for Business and Trade (DBT) has a live consultation on late payment, which closes on 23 October 2025.

Proposals cover tighter reporting and stronger enforcement, alongside the voluntary Fair Payment Code. Ministers have committed to publishing outcomes within 12 weeks.

What to do: If you rely on large buyers or sell into the public sector, it makes sense to start checking how your payment terms align with what's likely to become the 30-day standard under the Procurement Act.

Consumer law

The Digital Markets, Competition and Consumers Act 2024 has already tightened rules on subscription practices, online sales and drip pricing.

New requirements on cancellations, renewals and pre-contract information came into force earlier this year, with further guidance still being published.

What to do: If you sell online or via subscription, now's the time to audit your checkout flows, renewal notices and cancellation routes to be sure they're simple and transparent.

November and December 2025

Companies House reforms

From 18 November 2025, company directors and people with significant control will need to complete identity verification.

They will do this either through GOV.UK or an authorised provider, with a 12-month transition period for existing roles.

What to do: It's sensible to schedule these checks in advance and decide how you'll store the evidence, particularly if you have overseas directors.

Autumn Budget

The Autumn Budget will take place on Wednesday 26 November 2025. Reports suggest a large-store surcharge could be used to fund small business rates relief.

There's also speculation about changes to the VAT threshold, although this hasn't been confirmed.

What to do: If you're close to the current VAT threshold or trade in sectors like retail and hospitality, it's worth modelling different scenarios so you understand the possible impact on your costs.

Procurement reforms

The Procurement Act 2023 is now in force. All new public contracts must ensure 30-day payment terms flow right down the supply chain. Over the next year, more tools and notices will come online to increase transparency.

What to do: If you subcontract, build these 30-day terms into your own agreements now to avoid disputes later. Guidance is available in the official supplier guide.

Enterprise Nation is launching its Supply Connect platform this week that will link small businesses with Tier One suppliers.

Early 2026

Tax and filings

The Making Tax Digital for Income Tax Self-Assessment (MTD ITSA) programme begins in April 2026 for sole traders and landlords with income over £50,000, and will extend to those earning over £20,000 from 2028.

The change means digital record-keeping and quarterly updates through approved software.

What to do: Planning ahead for the cost of software and any training will help you avoid disruption.

Borders and trade

Border rules continue to shift. The government has paused some additional sanitary and phytosanitary (SPS) checks while it negotiates a UK-European Union agreement, but the current Border Target Operating Model requirements remain in place.

Since 31 January 2025, safety and security declarations have been required for EU imports.

What to do: If you trade across borders, double-check that your processes are compliant with what applies today, while keeping an eye on any new deal.

On 1 April 2026, the next business rates revaluation comes into effect. Multipliers and reliefs will be set out in the November Budget, so keep an eye on how these could shift your liabilities. Further employment rights measures from the new Bill will also phase in during 2026.

At the same time, the government's Small Business Plan continues to shape activity across access to finance, markets, business capabilities and procurement.

Key official documents to bookmark

• Backing your business: Small Business Plan (DBT) and policy annex

• Employment Rights Bill tracker and implementation roadmap

• Late payments consultation (closes 23 October 2025)

• Procurement Act supplier guide

• Companies House ID verification updates

• Business rates forward look (for 2026 revaluation context)

• DMCC Act (consumer protections now in force)

Final word

This autumn will be busy for small business policy. Some changes require immediate steps in order to comply, while others are longer-term but worth planning for now.

If you'd like to discuss how these developments could affect your business, please contact me for more information.