Talk of sweeping tax increases has returned to Westminster, and this time, they could reshape the business landscape.
From bookmakers to manufacturers, companies warn that higher duties and reduced margins could bring job losses and shrinking investment.
Yet for small and medium-sized businesses, the greater danger isn’t the tax rise itself, it’s waiting too long to prepare.
When credit tightens, lenders become cautious. Approvals slow. Liquidity dries up.
The smart move? Set up your facilities while balance sheets still look strong.
At Finspire Finance, we call this strategic readiness, building access to working capital before the market turns.
The Headlines Say It All: Higher Taxes, Lower Confidence
Two major reports this week underscore how potential tax rises could ripple through every corner of the economy, from the high street to boardrooms.
In the leisure sector:
Betfred CEO Joanne Whittaker told The Sunday Times that new gambling duties could make the company’s retail operation unsustainable, forcing mass closures across the UK.
If the Chancellor goes ahead with these increases, we’d have no choice but to close our entire retail estate... It would mean thousands of jobs lost, reduced tax revenue, and a surge in black-market gambling.
Under the proposed changes, sports-betting tax could jump from 15% to 30%, while machine and online slot taxes might rise from 20% to 50%, an estimated £3.2 billion windfall for the Treasury, but at the cost of 7,000 jobs and 1,300 betting shops.
Across the wider economy, a survey by the Institute of Chartered Accountants in England and Wales (ICAEW) paints a similarly bleak picture.
Policymakers talk a lot about growth, but the businesses trying to deliver it are being held back
According to the poll, 56% of UK businesses would be forced to cut jobs or freeze recruitment if taxes rise further, while 39% plan to reduce investment, a move that could stall recovery just as growth begins to return.
It’s a clear message for business owners: when fiscal pressure increases, confidence and credit both contract. The time to strengthen your financial position is before that tightening begins.
Why Waiting Costs More Than Borrowing Early
Every downturn follows the same pattern: businesses wait until cash flow tightens, then discover credit has disappeared.
By that point, financial statements show stress, tax arrears, or weaker profit, and lenders pull back.
The solution is counterintuitive but proven: borrow while you’re still strong.
Accessing flexible facilities early doesn’t mean taking on unnecessary debt; it means creating options. When revenues dip or taxes rise, you’ll already have the capital in place to keep payroll, suppliers, and growth plans secure.
Funding Tools to Secure While Conditions Are Favourable
1. Invoice Finance
Release up to 90% of outstanding invoices within 24 hours.
Ideal for firms with delayed customer payments or seasonal cycles.
Why act now: approvals are faster and terms more generous while your books are healthy. Once new tax rises ripple through the economy and cashflow tightens, every business will be chasing the same funding lines.
When that happens, lenders become far pickier, rates climb, and credit limits shrink.
By setting up your facility in advance, you’ll already have access secured when others are still queuing for it.
2. Tax and VAT Funding
Spread corporation tax, Self-Assessment, or VAT bills over 3–12 months, preserving day-to-day liquidity.
Why act now: establishing a facility early builds trust and a payment history with a lender. When the next tax cycle arrives where bills may be significantly higher, those with a proven track record are far more likely to be supported quickly and on better terms.
Some lenders even offer auto-renewal features, allowing your business to roll forward each new tax period seamlessly. It’s a simple way to turn a one-off arrangement into a long-term advantage, keeping your funding predictable while others scramble for approval.
3. Revolving Credit Lines
Draw funds when needed, repay when not, a flexible buffer against surprises, like the upcoming Budget and whatever follows in its wake.
These facilities provide immediate liquidity for tax obligations, payroll, or supplier payments without locking you into long-term debt.
Why act now: approvals are based on your current financial performance, not future projections. Once profits dip or new taxes bite, lenders tighten criteria and credit limits are re-evaluated.
By securing a facility in advance, your credit limit is typically locked in for the next 12 months. Meaning, even if conditions worsen, you still have access to the same funding agreed when times were good.
4. Supplier and Trade Finance
Pay suppliers early or secure stock ahead of competitors while deferring your own payments.
Why act now: strengthens relationships and locks in discounts during uncertain trading periods.
Practical Steps Before the Budget
Forecast multiple tax scenarios.
Model how a 5–10% increase would affect cash flow and margin.Pre-qualify for facilities.
Approval rates and terms are far better when financials are stable.Diversify funding sources.
Blend invoice finance, VAT loans, and revolving credit for agility.Avoid emergency borrowing.
Distress borrowing is slower, costlier, and often unavailable.
Secure Strength Before You Need It
Tax hikes may be inevitable, but financial strain doesn’t have to be.
Resilient businesses treat credit as infrastructure, something to build before you need it, not after.
By establishing flexible funding lines now, you can protect your workforce, preserve growth, and act confidently through whatever Budget follows.
At Finspire Finance, we help UK businesses access the right capital structure. All you need to do is tell us your plans, we’ll tell you what’s possible.
