Autumn Budget 2026: PRCA welcomes growth measures but warns reduced business disposal relief could affect agency owners
The PRCA welcomes measures in the Autumn Budget 2026 to support businesses and entrepreneurs, while noting concerns about the impact of reduced Business Asset Disposal Relief on agency owners.
The government’s focus on entrepreneurship and administrative reform is welcome for an industry in which smaller agencies and independent practitioners play an important role. However, businesses will look for these commitments to provide the certainty they need to invest, recruit and grow.
Support for businesses
The reduction in the lifetime limit on gains eligible for Business Asset Disposal Relief from £1 million to £500,000, applying to qualifying disposals from 6th April 2027, could increase the tax paid by affected agency owners when selling their businesses.
The new Founders’ Relief signals recognition of the importance of entrepreneurship and investment. Intended to apply from the same date, it will target founders and significant early investors in high-growth, innovative UK companies. With detailed conditions subject to technical consultation, it remains important to understand which communications businesses will qualify. Support for entrepreneurship should recognise the contribution of established agencies and smaller owner-managed firms alongside high-growth businesses.
The PRCA also welcomes the increase in the threshold for full Small Business Rates Relief to £18,000 from April 2027 for eligible retail, hospitality and leisure properties in England. This will provide some breathing space for smaller businesses in sectors that are important clients and partners for communications professionals. However, this targeted support does not generally extend to PR and communications offices.
The plans to give mayoral strategic authorities in England a share of income tax revenues from 2028–29 are also a welcome opportunity to support regional growth. Giving regional leaders greater certainty over funding could help them direct investment towards local priorities, strengthening the business communities in which our members operate. The benefits will depend on effective delivery and ensuring that opportunities for growth are shared fairly between places.
The government’s pre-Budget commitments to simplify reporting and reduce unnecessary administration are constructive. Clear implementation timetables and accessible guidance will be essential to translate these ambitions into practical savings.
Employers will also need to account for the announced 3.9% increases in statutory minimum wage rates from April 2027 where applicable. The priority now is to ensure that the Budget’s measures give our members and the businesses they advise greater confidence to plan for the future.
