Invest East Yorkshire Weekly Update - 2/12/25

2nd Dec 2025

Hello and welcome to this week’s update.

The Hull and East Yorkshire Combined Authority is developing a new Local Growth Plan—a ten-year strategy designed to drive sustainable prosperity across our region. To ensure this plan meets the real needs of our economy, it is vital that local businesses help shape it and the combined authority are asking for your views by way of a consultation before the plan is finalised. This is your opportunity to influence the priorities that will define the business landscape for the next decade. We urge all local businesses to get involved and ensure your voice is heard.
Have your say: Local Growth Plan – Hull and East Yorkshire Combined Authority

Our final networking event of 2025 will take place on Thursday 11th December at the Aura Centre, Bridgehead business park in Hessle. This time we switch from our normal breakfast time to late afternoon, running from 4 through to 6pm. This is a great opportunity to make new contacts and is free to attend. Book your place HERE

Last week saw the Autumn budget statement from the Chancellor. We have summarised the key things which affect business below.
Business News

Get Ready for Small Business Saturday – 6 December 2025
With the festive trading period underway, businesses are encouraged to participate in Small Business Saturday on 6 December 2025. This national campaign highlights the success of small businesses and encourages consumers to ‘shop local’.
- How to get involved: You can download free digital marketing assets (such as social media graphics and posters) from the Small Business Saturday website to signal your participation.
- Local Impact: This is a prime opportunity to engage with new customers in the East Riding area who are actively looking to support independent trade during the holiday season.

Find out more here: Small Business Saturday UK

HMRC Updates: Preparing for Making Tax Digital (MTD)
HM Revenue and Customs (HMRC) is currently writing to sole traders and landlords to confirm the upcoming introduction of Making Tax Digital for Income Tax. From 6 April 2026, this will become a mandatory requirement for those with a total gross income exceeding £50,000 in the 2024/25 tax year. Under the new system, you will no longer file a single annual Self Assessment return but must instead maintain digital records and send quarterly updates to HMRC.
For more information, please visit: Making Tax Digital for Income Tax - GOV.UK.

Employer Responsibilities: Preventing Harassment at Festive Events
With the party season underway, employers are reminded of their legal duty under the Worker Protection Act 2023 to take reasonable steps to prevent sexual harassment. This responsibility extends beyond the office to all work-related social events, including Christmas parties.
To ensure a safe and respectful environment, the Equality and Human Rights Commission (EHRC) recommends the following practical steps:
- Assess Risks: Plan ahead regarding the management of alcohol, transport, and potential power imbalances.
- Set Expectations: Clearly communicate behavioural standards and relevant policies to all staff before the event.
- Consider Third Parties: Be mindful of potential risks from other customers or members of the public if hosting at an external venue.

For more information, please visit: New sexual harassment law and workplace Christmas parties: What employers need to know | EHRC

Identity Verification Requirements Now Live
A reminder that as of 18 November 2025, the new identity verification laws for company directors and Persons with Significant Control (PSCs) came into effect.
- New Appointments: Any director appointed from this date must verify their identity within 14 days.
- Existing Directors: You do not need to act immediately; you will verify your identity when filing your company’s next confirmation statement during the 12-month transition period.
Companies House has begun contacting businesses with specific guidance. Please ensure you monitor your registered email address for these instructions to remain compliant.

Find out more here: GOV.UK - Identity Verification Guidance

Topic Of The Week

Autumn Budget overview for businesses
The Chancellor’s Autumn Budget sets out major changes that will shape the business landscape for over the coming years. From tax reforms and wage increases to incentives for investment and sustainability, here’s a breakdown of some of the most relevant.

1. Business Rates Reform

Starting April 2026, permanent reductions in business rates will benefit over 750,000 retail, hospitality, and leisure properties. These cuts are funded by higher rates on properties valued above £500,000. A £4.3 billion transitional support package will help businesses manage the impact of revaluations. Additionally, SMEs expanding into a second property will continue to receive Small Business Rates Relief for two more years, easing growth costs.

2. Wage Increases

Labour costs are set to rise. The National Minimum Wage for workers aged 21 and over will increase to £12.71 per hour from April 2026. Rates for younger workers and apprentices will also rise, and employers paying the Real Living Wage should prepare for new benchmarks: £13.45 outside London and £14.80 in London by May 2026. These changes aim to support workers but will require careful planning for payroll budgets.

3. Tax Changes

Several tax adjustments will affect business owners and investors:

- Dividend Tax: From April 2026, rates increase by 2 percentage points—basic rate to 10.75%, higher rate to 35.75%. This impacts directors who take income via dividends.
- Property Income Tax: From April 2027, separate bands apply—basic rate 22%, higher 42%, additional 47%. This targets landlords and property investors.
- Savings Income Tax: Also rises by 2 percentage points from April 2027 across all bands.
- Income Tax Thresholds: Frozen until 2030–31, meaning more earners will move into higher bands over time.

These changes will increase the tax burden on investment income, so SMEs should review remuneration strategies and consider alternative planning options.

4. Pension Contributions via Salary-Sacrifice

From April 2029, only the first £2,000 per year of salary-sacrifice pension contributions will retain National Insurance advantages. Contributions above this limit will be taxed like standard employee payments. This measure aims to reduce tax advantages for higher earners while maintaining fairness for most employees. Businesses offering enhanced pension schemes should review their benefits packages to ensure compliance and cost-effectiveness.

5. Investment & Growth Incentives

The government is keen to stimulate growth and innovation. The Annual Investment Allowance remains at £1 million, and a new 40% First Year Allowance for main-rate assets will start in January 2026. Limits for Enterprise Investment Scheme (EIS) and Venture Capital Trusts (VCT) will increase, encouraging investment in scale-ups. Additionally, the British Business Bank will invest £5 billion in growth-stage funds, providing more opportunities for SMEs seeking capital.

6. Electric and Hybrid Vehicles

Sustainability remains a priority, but new charges are coming. From April 2028, electric vehicles will face a road charge of 3p per mile, while plug-in hybrids will pay 1.5p per mile. This change aims to create parity with petrol and diesel drivers who contribute through fuel duty. While EVs remain exempt from fuel duty, businesses operating electric fleets should factor these costs into long-term budgets. The revenue will support road maintenance and charging infrastructure expansion.

7. Compliance & Penalties

Corporation Tax late filing penalties will double from April 2026, and a new penalty system for late submission and payment will apply to all Income Tax Self Assessment taxpayers from April 2027. SMEs should ensure robust compliance processes to avoid costly fines.

The Autumn Budget brings both challenges and opportunities. Rising wages and tax changes will increase operating costs, while incentives for investment and sustainability offer growth potential. Key actions for SMEs include:

- Review payroll and pricing strategies to absorb wage increases.
- Reassess dividend and remuneration plans in light of higher tax rates.
- Plan for pension contribution changes to maintain employee benefits.
- Factor in future EV road charges if operating electric fleets.
- Leverage investment allowances and funding schemes to support expansion.

Early planning and proactive financial management will be essential to navigate these changes successfully.

Find out more here: Budget 2025 - GOV.UK

Events

Hull & East Yorkshire Manufacturers Network - Christmas Networking – Friday 5th December 12 til 2pm

Join the HEY Manufacturers network for a free and informal networking session just before Christmas at the Aura Innovation Centre.

Learn about the upcoming events and activities of the manufacturers network in 2025, as well as the current business support and funding available for manufacturers from the Hull & East Yorkshire business support teams.

This event is exclusively for manufacturing businesses with a free buffet lunch.
For more details and bookings visit HERE

Scaling Up for Creative Growth – Enrol Now for the Creative Growth Programme Cohort 7

This is the final chance for creative sector businesses to access free support by registering for the Creative Growth Programme’s final Cohort, which commences on Tuesday 13th January 2026 at Hull University Business School.

The Creative Growth Programme is a 12 week fully-funded course that includes 8 practical workshops (1 day a week over the first 8 weeks) covering a range of business growth and investment topics, in addition to diagnostics, specialist guest speakers, bitesize masterclasses, peer learning sessions, and mentoring. Participating businesses are also invited to exclusive ‘alumni’ events including socials, networking, guest speakers and industry insight events. To find out more and to register your place on the programme simply click here or email at creativegrowth@heybusinessgrowthskillshub.com

Working in conjunction with Invest Hull and Hull & East Yorkshire Growth Hub we have a full programme of free to attend workshops and events running across the area. To find out more and book on one of our workshops, visit: https://investeastyorkshire.co.uk/events/

Places fill quickly so we encourage anyone interested to book early.

We are constantly reviewing and developing our programmes of events and workshops, therefore if you have any thoughts on potential future topics that would benefit your business or supporting you in developing your own skills or knowledge then please reach out and let us know.

Contact Us
For full details on all our services including business support and business centre facilities visit: click here or contact the business support team on 01482 391622 or business.support@eastriding.gov.uk