✅ What's in the Budget for scaleup businesses?
Corporate communications, public relations, media and management insight
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Employer National Insurance Contributions (NICs), the National Living Wage increase, and Capital Gains Tax got the headlines, but Sarah Waddington CBE dug into the details of the Budget for scaleup businesses.
It was good to see a focus on small and medium-size (SME) businesses. The Chancellor announced a Small Business Strategy paper aimed at “making it easier to access finance, opening up overseas and domestic markets, building business capabilities, and providing a strong business environment.” It’s to be published next year - we’ll be keeping our eyes peeled and will report back when ready.
I wrote about the Industrial Strategy when it was published as a green consultation paper. The Budget included tax reliefs for the creative industries, equalling £15 billion of support over the next five years.
Springing out of the Industrial Strategy is a Review of Technology for Growth, Innovation and Productivity. The government has published the terms of reference focussed on the barriers businesses face in adopting technology. We’ve got this as another watching brief.
We’re huge proponents of lifelong learning so welcome the £40 million investment in the Growth and Skills Levy, which will see the introduction of foundation apprenticeships for younger people, as well as shorter apprenticeships designed to give learners and employers more flexibility.
In terms of Growth Capital, the British Business Bank has been awarded £1 billion, including over £250 million each year for small business loans programmes, with £50 million invested in women-led funds.
R&D investment continues with £20.4 billion committed across 2025/2026 including fully funding the UK’s association to the Horizon Europe research programme. It includes a £520 million Life Sciences Fund to unlock £1.8 billion in private investment and advance health resilience.
The Government’s new Corporate Tax Roadmap is aimed at delivering a “stable and predictable tax environment which provides the confidence needed to encourage investment, innovation, and growth over the long-term.” This sees Corporation Tax capped at 25%, the Small Profits Rate retained and marginal relief at current rates and thresholds. It also maintains key features as such as full expensing and the £1 million annual investment allowance.
Business Asset Disposal Relief (previously known as Entrepreneurs’ Relief) remains at 10% this year, before rising to 14% on 6 April 2026 and 18% from 6 April 2027.
Our clients in Scotland, the West Midlands and North West will be pleased to see the extension of the Innovation Accelerator Programme. It is investing £100 million in 26 transformative research and development projects to accelerate the growth.
The SME Digital Adoption Taskforce is being extended and is due to report in early 2025. The details of a £4 million pilots package to encourage SME tech adoption is expected in due course from the Department for Business and Trade.
The Wadds Inc. perspective
Our view? It was good to see a budget based on strategic thinking and building the foundations for long-term growth, however much we’d all like it to materialise quickly.
And, as the Guardian reports, we also believe that:
“Ideally, progress should be measured not only by government benchmarks but also by broader notions of social welfare and wellbeing.”
Finally, it was great to see a budget delivered by the first female Chancellor. Well done and thank you for showing what can be achieved, Rachel Reeves.
Have a great week.
Management
💔 HORIZON IMPACT: A new report from the Post Office Horizon IT Inquiry reports that 65% of scandal victims report damaged family relationships, with many describing broken marriages, estranged families, and children who suffered bullying and mental health issues. The findings focus on the victims’ perspective of the scandal. It’s exceptional as it’s a viewpoint that is frequently ignored in a crisis. Source: Post Office Horizon Inquiry.
🎙️ COMMS AND MANAGEMENT PODCAST: The latest episode of the Wadds Inc. podcast covers our report for NewsWhip on digital transformation and the PRCA's findings on the pitch processes in public relations. We also highlight leadership challenges and social mobility initiatives spotlighted at recent industry events, notably the Co-op and Demos Careers Unfair in London, and CommsHero in Leeds. Source: Wadds Inc.
Research
🕵️ BOT BUST: Global Witness exposed a coordinated network of 71 suspicious X accounts pushing pro-Azerbaijan messaging before COP29, using identical nature imagery and synchronized posting. The campaign aims to suppress criticism of Azerbaijan's fossil fuel dependence and rights issues ahead of the climate conference. Source: Global Witness.
Media
📰 MEDIA MOVES: Mill Media expands its local journalism footprint with the launch of The Londoner and Glasgow's The Bell, offering in-depth community reporting with three full-time London reporters and a Glasgow team led by Moya Lothian-McLean and Robbie Armstrong. Both titles will initially be free before implementing paywalls. Source: Press Gazette.
📰 PRESS TURMOIL: The Washington Post's decision to end presidential endorsements has triggered internal upheaval, including a senior resignation and criticism from its former editor, while owner Jeff Bezos defends the move amid scrutiny over the timing of a meeting with Trump and subscriber losses. Source: The Washington Post.
📺 VIDEO AD BOOM: UK online video advertising surged 26% to £4.12 billion in the first half of 2024, driving publishers like The Independent, Daily Mail, and Reach to invest heavily in video content teams. Publishers particularly focus on YouTube, where Times Radio and TalkTV each hit 1 million subscribers, though search advertising still dominates overall digital spending at £7.87 billion. Source; Press Gazette.
Artificial intelligence
©️ COPYRIGHT CLASH: Labour leader Sir Keir Starmer sparked debate by stepping into the AI copyright scrapping controversy, which pits tech innovation advocates against creators' rights defenders. While supporters claim the move could position the UK as an AI leader with benefits across multiple sectors, critics, including artists and publishers, argue for an opt-in model to protect creative livelihoods. Source: Andrew Bruce Smith.
🤖 AI SLOP: Medium says it is experiencing a massive influx of AI-generated content, with analysis showing over 40% of recent posts may be AI-created, particularly in crypto and tech topics. Users report the same on LinkedIn and Substack. Medium CEO Tony Stubblebine claims this "doesn't matter" since most AI posts get zero views. Source: Wired.
Social media
📍 FAREWELL FOURSQUARE: Foursquare has announced the shutdown of its City Guide app on December 15, ending a pioneering era in location-based social networking, while founder Dennis Crowley reflects nostalgically on the app's legacy. The company will continue focusing on its check-in app Swarm and its $100 million revenue business. Source: TechCrunch.
📱 THREADS SURGE: Meta's Twitter challenger Threads has reached 275 million monthly active users, adding 100 million users in just three months amid X's political controversies. While Meta CEO Mark Zuckerberg reports that the app is growing by a million sign-ups daily. The company doesn't plan to monetise Threads with ads until at least 2025. Source: Meta.
Thank you to Catherine Frankpitt, Michael Greer, Ben Lowndes, Alan Morrison, Andrew Bruce Smith, Sarah Olney, Jack Richards, Carole Scott, Darryl Sparey, Sarah Waddington CBE and everyone who shares and debates the stories in the newsletter via our Facebook community. You‘d be welcome to join us.