Autumn Budget 2025: What Franchisees and Franchisors Need to Know

The Chancellor’s Autumn Budget has now been delivered, bringing a range of confirmed changes that will likely affect franchise networks across the UK. From wage increases and business rates adjustments to shifts in consumer spending power, this year’s announcements will shape how franchisees plan, recruit and invest over the next 12 months.

To help franchise owners and franchisors navigate the changes with confidence, we’ve created a clear, practical summary of the measures that matter most and a supplementary guide that goes into more detail.  

You can download our full Autumn Budget 2025 Guide

Below is a breakdown of some of key changes and what they could mean for your franchise. Please note: This blog is for information purposes only. Always seek professional advice before making any decisions that may impact your business. 

1. Business Costs & Operations

Business Rates

Confirmed:

• Business rates cut for 750,000 retail, hospitality and leisure properties.
  
  
• Funded by higher charges on larger premises with rateable values over £500,000, including distribution warehouses.
  
  

Impact for franchise networks:

• Positive for high-street franchisees.
  
  
• Potential cost increases for franchisors with large HQ sites, logistics hubs or multi-site operators.
  
  

2. People, HR & Payroll

National Minimum Wage & Living Wage Increases

Confirmed from April:

• £12.71/hour for 21+
  
  
• £10.85/hour for 18–20
  
  
• £8/hour for 16–17s and apprentices

Labour-intensive franchise sectors will need to reforecast staffing costs and rota structures.

Youth Guarantee 

The Chancellor has committed £820 million over three years to fund a Youth Guarantee for 18–21 year-olds, offering access to training, apprenticeships or structured employment support.

Under-25 Apprenticeships – Fully Funded

Confirmed:
Training for under-25 apprenticeships is now completely free for small and medium-sized enterprises.

Why it matters:

• A major cost saving for franchisees who rely on young staff.
  
  
• Supports early-career recruitment across hospitality, retail, trades, care, fitness and service-based franchises.
  
  
• Franchisors may want to incorporate this into recruitment pathways and standard operating models.
  
  

3. Taxation Changes Affecting Business Owners

Income Tax Thresholds Frozen

Confirmed freeze to personal tax thresholds, continuing fiscal drag.

Dividend Tax Increase

Dividend tax rates increase by 2 percentage points, affecting franchisees and franchisors using limited-company structures.

4. Travel Measures

Ride-Hailing Journeys Taxed

Trips using the likes of Uber and Bolt will now face a specific new tax.

Rail Fare Freeze

Rail fares frozen for the first time in 30 years, helping keep business travel costs stable.

Mileage Tax on EVs

• Electric vehicles: 3p per mile
  
  
• Plug-in hybrids: 1.5p per mile

Important for mobile service franchises, field-based operator models and delivery-focused brands.

Fuel Duty Frozen

Fuel duty remains frozen at 52.95p per litre, offering short-term stability on running costs for fuel fleets.

5. Consumer Spending & Market Demand

While not directly business-focused, several confirmed measures will shape household budgets and therefore customer demand — essential for franchise forecasting.

Two-Child Benefit Cap Scrapped

Confirmed removal of the cap from April 2026.

Potential impact:

• Increases disposable income for affected families
  
  
• Could strengthen demand in:
  
  
  • Retail franchises
    
    
  • Hospitality
    
    
  • Children’s services
    
    
  • Leisure and activity brands
    
    

Energy Bills to Fall by £150

A confirmed reduction via cuts to existing levies.

Likely to ease pressure on household finances, improving consumer confidence — helpful for demand across most customer-facing franchise sectors.

6. Broader Economic Context (Confirmed OBR Data)

• Growth forecast lowered to 1.4% in 2026, then around 1.5% annually.
  
  
• Inflation forecast at 3.5% this year, 2.5% next year.
  
  

Although modest, a more stable inflation environment helps franchise networks with pricing strategies, procurement and supply-chain planning.

What Franchise Networks Should Consider

For Franchisors

• Update franchise recruitment materials and financial forecasts
  
  
• Support networks with cost modelling and wage planning
  
  
• Refresh viability tools and business plans for new franchisees
  
  
• Provide guidance on apprenticeships and youth recruitment routes
  
  
• Assess network-wide impact of changing consumer spending patterns
  
  
• Ensure that they have a Franchisor specialist accounting and funding partner like the dt group to support you and your Franchisors. 

For Franchisees

• Budget for April wage increases
  
  
• Review cost forecasts if operating electric or hybrid fleets
  
  
• Update remuneration strategies in light of dividend tax changes
  
  
• Leverage fully funded under-25 apprenticeships
  
  
• Monitor consumer confidence changes driven by benefit reforms and energy-bill reductions
  
  
• Ensure that they have a Franchise specialist accounting and funding partner like the dt group to support you. 
  
  

Please note: This blog is for information purposes only. Always seek professional advice before making any decisions that may impact your business.

You can download our full Autumn Budget 2025 Guide