According to the latest SME Pulse for Q3 2025 report from Atom Bank, 92% of brokers are reporting their clients have some level of concern about possible property tax or capital gains tax (CGT) changes in the upcoming Autumn Budget.
Rumours surrounding the Autumn Budget suggest that CGT reform could be on the cards, along with replacing stamp duty with a property tax that would impact higher-value properties.
More than half – 53% – of brokers said their clients were very concerned about possible measures in the Autumn Budget.
Meanwhile, 54% of brokers said their clients were slightly worried about changes to business rates, with nearly a third saying their customers were very concerned.
In September, the government said there would be business rate reform at the Budget, with a focus on removing barriers to investment, such as a marginal tax rate system, and enhancements to small business rates relief and improvement relief.
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Looking at demand, half of brokers said the appetite from clients was unchanged, up 4% from the last survey, but the proportion reporting growing demand has fallen by 5% on the prior quarter to 41%.
This softening demand could be reversed if tax cuts or business rate reductions come through in the Autumn Budget, with 92% of brokers saying that if costs were lowered, then client borrowing appetite would grow.
Nearly half said clients would likely invest in new premises and nearly a third said clients would take the opportunity to grow their teams.
More customers exploring green lending
Over a third of brokers said they were not talking about the need to make commercial premises more energy efficient with SME clients.
However, 90% of brokers said customers were likely to look for finance to fund such a project should the Autumn Budget offer next tax breaks for green business improvements.
Atom Bank said this suggests green finance could be an opportunity for brokers if the Budget involves the necessary incentives.
Tom Renwick, head of business lending at Atom Bank, said: “Demand from business borrowers seems to have plateaued, with exactly half of the brokers polled for the SME Pulse reporting no change in appetite. And the reason seems pretty clear – this month’s Budget.
“Given the uncertainty about potential changes to the tax system, some business owners are understandably opting to pause their plans until they have a clearer picture of their future costs. Tax represents a significant outlay for SMEs, so it’s little wonder brokers are seeing so much concern among their clients about the likelihood of larger bills.
“A focus on overheads is perhaps also influencing considerations about energy-efficient improvements. Businesses want to reduce their energy bills, whether driven by financial concerns, environmental worries, or both. However, that will only be possible if the sums add up, which is why owners will be keen to see whether the Chancellor will outline relevant tax incentives.
“What will be key for businesses as they pursue their next steps is access to easy, fast and flexible finance. Brokers clearly believe that in the event of new business incentives, their clients will want to act. Lenders need to be ready to support those borrowers once the dust settles post-Budget, while brokers will need to prioritise working with lenders best placed to support their SME clients.”
