Full Budget Document

Government Fact Sheets

·       Tax Support for Businesses

·       Cutting the Cost of Living

·       Driving Economic Growth

Budget Tax related documents published 26^th November  

·       Introduction of the Carbon Border Adjustment Mechanism

·       Changes to Business Property Relief

·       List of all budget tax related documents

OBR Economic and Fiscal Outlook, 26^th November 2025

To view PKF Francis Clark’s budget analysis click here

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• UK GDP growth for this year,202, is up from 1.0% at the time of the previous spring forecast to 1.5%. 
• However, the OBR has lowered its medium-term productivity outlook by 0.3% to 1.0% by the end of the five-year period. 
• Cumulative real wage growth and inflation over the next two years are forecast to be around ¾ and ½ a percentage point higher than in March respectively.
• The government remains on track to meet its fiscal rules: borrowing is forecast to fall, and public-sector debt (as a share of GDP) is set to decline by 2029–30.  
• The government will ‘more than double’ the fiscal headroom against its stability rule to £21.7bn reassuring bond markets
• The net impact of Budget spending and tax policies increases borrowing by £5 billion on average over the next three years but then reduces it by £13 billion on average in the following two years.
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                                                                                                       Source: OBR website

For full details click here

• Tax revenues to increase by £26 billion over next five years, with the Chancellor securing fiscal headroom of £22bn by 2029/30
• Public spending likely to be £32 billion higher in 2029/30 than previously projected
• National Insurance and income tax thresholds will be frozen for an extra three years until April 2031 dragging more people into tax / more paying higher rates. 
• Increasing the National Minimum Wage rate (from £10 to £10.86 per hour and the National Living Wage (from £12.21 to £12.71). 
• Cap for pension salary sacrifice schemes from 2029 – with contributions above £2,000 subject to tax in the same way as other employee pension contributions. 
• Cap of £12,000 a year for Cash Isas from April 2027 for the under-65s. Remaining at £20,000 for over-65s. 
• Two-child benefit cap scrapped from April 2026 at a cost of £3bn. 
• Properties worth more than £2m charged £2,500 annually and properties worth more than £5m charged £7,500. 
• Pay per mile charge for electric vehicles – 3p per mile for electric cars and 1.5p for plug-in hybrids.  
• Fuel Duty Frozen until August 2026 and then gradually increased returning rates to pre 2022 level by March 2027.

The Budget resets the business‑rates system in England ahead of the 2026 revaluation introducing new multipliers, reliefs, and protections, aiming to deliver lower rates for smaller/high‑street retail, hospitality and leisure businesses (RHL), while raising rates for larger or high‑value properties valued over £500k.

The business rates bills for 2026/27 will be calculated based on these new rateable values, combined with the multipliers announced in Budget 2025:

• Small business multiplier: 43.2p
• Standard non-domestic multiplier: 48.0p
• RHL small multiplier: 38.2p
• RHL standard multiplier: 43.0p
• High-value multiplier (RV ≥ £500,000): 50.8p

Whilst the permanently lower multiplier for an estimated 750,000 RHL businesses is welcomed, the 5p discount is only a quarter of the maximum 20p discount the Government had proposed last year. Due to new business rates valuations many RHL businesses may still see significant rises in their tax bills. 

The government is allocating £4.3 billion over the next 3 years on the following support packages to assist businesses whose rates are increasing.

• A £3.2 billion Transitional Relief scheme providing more generous support to the largest ratepayers, including airports and hospitality. 
• A Supporting Small Business scheme to help the smallest businesses worth over £500 million. 
• Expanding the Supporting Small Business scheme to businesses who were eligible for RHL relief, protecting independent pubs and shops as they transition to permanently lower tax rates. This additional support is worth £1.3 billion.

For further information on specific relief schemes, including relief for RHL relief click here

• From 1 April 2026 for companies paying Corporation Tax (and 6 April 2026 for income-tax cases), the main rate of Writing-Down Allowances (WDA) on plant and machinery will be reduced from 18% currently to 14%
• The Budget maintains a 40 % First Year Allowance (FYA) for “main‑rate assets” to incentivise investment in qualifying plant and machinery by allowing immediate (or early) tax relief.
• It confirms that the £1 million Annual Investment Allowance (AIA) remains available. This means SMEs can still deduct up to £1 million of investment in plant and machinery in the first year.
• For businesses investing in zero‑emission cars or EV‑charging infrastructure / charge-points the 100 % first‑year allowances continue. 

Note - this FYA and investment incentives for green assets is targeted at road transport electrification - there is no currently no specific relief for the leisure marine or electric charging infrastructure for vessels. Without fiscal incentives it is vital the regulatory framework is improved to encourage private sector investment.

Summary of changes to corporation tax and the business allowance regime

The Government will provide new funding to make training costs for under-25 apprentices free for SMEs with the aim of encouraging small employers to create more apprentice placements and invest in developing a younger workforce.

The Government is re‑orienting apprenticeship funding towards younger people, SMEs, shorter‑courses and technical‑skills training to support its industrial strategy:

•  Allocation of £725 million under a new “Growth and Skills Levy,” intended to support apprenticeships for people under 25, including a change to fully fund SME apprenticeships for eligible young people.
• As part of that change the SME co‑investment requirement (formerly 5%) for young apprentices is being extended up to age 24 (i.e. businesses hiring apprentices aged 22–24 will also benefit).
• Confirmation that from April 2026, the system will allow shorter courses (less than traditional long apprenticeships) via the Growth and Skills Levy — effectively making it easier to deliver “quick‑start” training in things like engineering, digital, and technical skills.

The Government also commits sizable funding packages across “priority” sectors: for example, a £182 million package over four years for engineering; £182 million for defence‑industry skills; and £187 million for the “Techfirst” digital skills programme.

Alongside financial measures, there are reforms to reduce bureaucracy on apprenticeships — simplifying training‑provider payments and assessments (End‑Point Assessments), reducing red tape, so providers and employers can focus more on training and less on paperwork

Relief for goods under £135 is being removed affecting importers, particularly online retailers relying on low-cost imports.  

On Budget Day the Treasury launched a consultation on the design of the new arrangements, including what data to collect, how the tariff should be applied, whether to apply an additional fee on LVIs to fund administration, and potential changes to VAT collection to reflect the new arrangements. It runs till 6^th March. For further information click here.

From January 2027 the government will remove indirect emissions from its scope -  whereas currently UK CBAM, which puts a price on certain imported goods, takes account of both direct emissions from the production process as well as indirect emissions, such as the electricity used in production. 

This change to UK CBAM will reduce costs for some importers, including marine companies, but may also reduce the incentive for importers to choose low-carbon electricity sources abroad. This is one example of the Government deciding to curtail its climate ambitions in an effort to maintain economic competitiveness and avoid trade wars.

In terms of energy costs the Budget primarily focused on helping to reduce household bills through the following: 

• Ending Energy Company Obligation (ECO) funding on bills after March 2026 – removing the “green surcharge” component from bills.
• £1.5m of government funding to replace ECO support for households facing fuel poverty.
• Subsidising the Renewables Obligation (RO) over next three years so households will only pay 25% of this green tax component of their bills

The Budget  also extended support for industrial / high intensive energy use businesses through the following:  

• Under British Industry Supercharger, the government is increasing the discount on electricity network charges for the most energy-intensive firms from 60% to 90%.  For hundreds of qualifying firms (e.g. in steel, glass, cement, chemicals), this is expected to save up to £420 million per year from April 2026. 

• From 2027, a new British Industrial Competitiveness Scheme (BICS) will run to help reduced electricity costs by roughly £35 - 40 per MWh for over 7,000 manufacturing businesses - which equates to a reduction of up ro 25% on electricity bills for eligible firms.  

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The government will give Mayors in England powers to raise a visitor levy on overnight accommodation, and will explore the option for this power being extended to the leaders of other strategic authorities.  Although  partly modelled on Welsh & Scottish policies, the Westminster Government appears to have taken onboard arguments previously made to  by British Marine to the devolved nations. 

The English proposal, subject to consultation, states that the visitor levy would apply to short-term overnight stays in commercially let visitor accommodation and could include onboard vessels that are permanently or predominantly situated in one place but it makes no reference to berths or moorings.

Furthermore, it makes clear the levy would not be applicable to a vessel that is undertaking a journey involving one or more overnight stops.  British Marine will still respond to the consultation so as to ensure the interests of the UK marine industry, and specifically British Marine members operating in England, are safeguarded.  For further information please see our Consultation section below. 

Ofgem uses the Maximum Resale Price (MRP) regulations to cap the price at which gas and electricity can be resold. To ensure MRP did not the impede the take up of electric cars, an exemption from MRP on the resale of electricity via EV charging points was introduced in 2014.  Yet, despite the emerging market in hybrid and fully electric boats, no such encouragement has yet been afforded to the marine sector.   It is  why British Marine has been calling for a change and why we welcome Ofgem’s decision to now review how MRP affects investment in marine charging infrastructure.

Currently there no incentive or encouragement for marinas to invest in new charging infrastructure because, whilst they can recover installation costs, MRP prevents them from making any profit. To hasten the growth in hybrid and electric propelled boats, leisure marinas must be permitted to make a reasonable return on the significant investment needed for future charging infrastructure.

For more information about Ofgem's Call for Input click here.  

British Marine's response will be uploaded to this page soon. 

The 2025 Budget announced new powers for Mayors in England to impose a £2 overnight levy on hotel and holiday let stays. Modelled on international cities and existing Welsh/Scottish policies, it aims to fund local tourism infrastructure but is condemned by some in the hospitality sector. 

The design of the scheme is now subject to consultation. British Marine welcomes the fact that the UK Government appears to have heeded the arguments we put forward to the Scottish and Welsh governments. 

The proposal makes no mention of 'berths or moorings' and states that in the case of commercially let overnight accommodation onboard vessels, the levy would only apply to those that are predominantly or permanently moored in one place.  Moreover it states it would not apply to onboard accommodation where a vessel is undertaking a journey involving one or more overnight stops.

However British Marine will be responding to ensure the interests of the industry and its members are safeguarded as far as possible.   

Please see the consultation proposal here. 

For further information about the consultation process and how to respond please click here.

British Marine has long been opposed the principle of tourism taxes and will continue to actively campaign against any move to apply such taxes to recreational boating other than in the case of airbnb type boats or floating lodges that are moored permanently in one place for the sole purpose of providing visitor accommodation. 

Whilst the marine industry, including marinas and hire boat companies, are not expected to be affected by the Welsh Visitor Levy, British Marine is mindful that Section 40 of the legislation allows for Welsh Ministers to bring forward future regulations should they wish to do so, which, subject to further consultation, could potentially extend the power of the legislation to berths and moorings.   

In responding to the Senedd's consultation, British Marine warned of the unfairness and damage that could be caused to our industry if recreational boating - a highly sustainable form of tourism as well as a sport -  were to be brought into scope of this legislation.

To read our response to the Bill, submitted in January 2025, please click here. 

Our work led to the Conservative Group tabling an amendment in May 2025 that sought to remove Section 40 from the Bill.  Regrettably the amendment was rejected by the Labour majority in the Senedd. 

Our Public Affairs Team has since written to the Minister reiterating the concerns and seeking assurance that, if the Government were to consider making use of Section 40 it would first consult British Marine Wales.    

Our Public Affairs teams regularly liaises with the Department for Business and Trade, as well British Marine's partners overseas, such as the US National Marine Manufacturers Association (NMMA) and the European Boating Industry (EBI).  This helps us stay on track with the latest developments and provide advice and insight to our members trading overseas.

To find out more, including please visit our International Trade Hub - click here

British Marine has joined with Family Business UK in opposing the Chancellor’s plans to slash Business Property Relief & Agricultural Property Relief on Inheritance Tax from April 2026.

In addition to making representations to the Treasury, British Marine urges members to use the template provided to write to their own MPs. Unless the Government rethinks its approach, family run marine businesses with qualifying assets above £1m, will face inheritance tax at 20%. 

This unexpected punitive planned tax change has not been subject of a consultation nor an impact assessment.  Yet our campaign's latest research (June 2025) shows that, if implemented as planned, the caps on BPR and APR will reduce economic activity by £15 billion and lead to more than 200,000 job losses, resulting in a £1.9 billion tax loss for the Treasury.  

• 7th July 2025 Member webinar on succession planning - for a recap click here 
• June 2025 Taxing Futures Report - including constituency level data  - View 
• Open Letter to the Chancellor - View
• Write to your MP Template - Business Property Relief on Inheritance Tax - Download
• Guidance for British Marine Members on MP Visits - View
• British Marine Press Release - View
• Watch again - Members' Webinar on planned changes to Business Property Relief on Inheritance Tax.

PPL PRS Limited is responsible for issuing TheMusicLicense to businesses so that they can legally play and perform music, whether through the radio, TV other other digital devises and/or live performances.  Established in 2018, the company acts on behalf of its two parent companies PPL (Phonographic Performance Ltd) and PRS for Music (Performing Rights Society) PPL PRS in managing TheMusicLicense and its associated tariffs.  

Whilst it is widely understood businesses who choose to play music in their premises require TheMusicLicense it has been less clear as to why and when businesses require a license to play music onboard their boats.

British Marine has therefore worked with PPL PRS Ltd to ensure the marine sector is treated fairly and provide clarity to its members as to when TheMusicLicense is required for music onboard boats.  See guidance note here

On 25 March 2025 British Marine had the pleasure of joining other colleagues from the Seabed User and Developer’s to talk to a host of stakeholders and parliamentarians at the Group’s 2025 Parliamentary Reception, kindly sponsored by the Rt Hon Alistair Carmichael MP, Chairman of the Environment, Food and Rural Affairs Committee and held inside the Palace of Westminster. 

This was a timely opportunity to talk to MPs, not least because the Planning and Infrastructure Bill had just completed its Second Reading before commencing its detailed scrutiny in the Committee Stage.  The legislation is relevant to our sector as it proposes to simplify  a range of planning practices, including procedures for marine licensing and to grant powers to change fees for harbour orders, considered essential for port construction and marine expansion projects.   Collaboration with SUDG partners is important, especially with the increase in offshore wind and DEFRA’s forthcoming Marine Recovery Fund which we understand will provide wind developers with an optional mechanism to finance strategic compensatory measures to support coordinated efforts that protect and enhance marine biodiversity. It may also include the creation or expansion of Marine Protected Areas and targeted habitat restoration. 

British Marine’s priority is to work with partners, such as other members of SUDG, and with government to ensure an appropriate balance is maintained between economic development and safeguarding the quality of, and access to, our seas by leisure boaters and other watersports enthusiasts.   We were delighted that the Minister for Water and Flooding spared time to address the reception and in doing so referenced the importance of the leisure marine industry to the wider economy.

For further information please contact our Public Affairs lead, Joanna Richardson jrichardson@britishmarine.co.uk 

Our specialist team are on hand to run through any regulatory/legislative changes with our members at any time.

We work hard to ensure that the best interests of our members are heard. We can build a case with our members to reflect potential government changes and when we need to, we can bring our industry together, adding weight to our lobbying efforts.

Network with regional and group associations to hear from other likeminded businesses who have used the service or use these sessions to work together collectively to create change.