Business News Update – March 2026
Welcome to our March business update, where we highlight the most relevant developments affecting UK businesses. From government announcements and tax updates to regulatory changes and practical schemes for employers, here’s what you need to know — and how it could affect your business.
If you’d like to discuss any of these topics in more detail, please get in touch. We’re here to help you understand what’s changing and how to plan ahead.
Spring Statement 2026 – What to Watch
The Spring Statement was delivered on 3 March 2026, providing an update on the state of the UK economy and the government’s financial outlook.
Unlike the Autumn Budget, the Spring Statement is not expected to introduce major tax changes. Instead, it sets the tone for the months ahead, drawing on the latest forecasts from the Office for Budget Responsibility (OBR), covering areas such as inflation, economic growth, unemployment, government spending and tax revenues.
While businesses are unlikely to see immediate tax rises or cuts, the OBR’s figures are important. They influence future decisions on interest rates, wage pressures and potential tax changes later in the year. The Chancellor’s commentary may also give early signals about how the government expects the economy to develop over the next 12–18 months.
Cycle to Work Scheme – A Practical Employer Benefit
The Cycle to Work scheme continues to be a popular and tax‑efficient benefit for both employers and employees.
The scheme allows employers to provide bicycles and eligible safety equipment tax‑free, often through a salary sacrifice arrangement. This reduces income tax and National Insurance for employees, while employers benefit from lower employer National Insurance contributions.
Key points for employers:
The bike must be mainly used for commuting or work‑related travel
The scheme must be available to the whole workforce
Employees do not own the bike during the hire period
VAT can often be reclaimed on bikes and equipment (subject to VAT rules)
Most employers choose to work with a third‑party provider to manage administration, although schemes can be run in‑house. Overall, Cycle to Work remains a straightforward way to support staff wellbeing while offering tax efficiency.
Carbon Border Adjustment Mechanism (CBAM) – Draft Rules Published
The government has released draft rules for the UK’s Carbon Border Adjustment Mechanism (CBAM), due to come into force on 1 January 2027.
CBAM applies a carbon price to certain imported goods, helping prevent “carbon leakage” where emissions‑heavy production moves overseas. UK businesses importing materials such as aluminium, cement, fertilisers, hydrogen, iron and steel may be affected, along with businesses further down the supply chain.
The draft rules outline:
How CBAM charges will be calculated
Available carbon price reliefs
Registration and reporting requirements
Record‑keeping obligations
Reimbursement arrangements
A technical consultation is open until 24 March 2026, offering businesses a chance to review the proposed administrative burden and provide feedback.
Getting Started with AI – New Resources for Small Businesses
Small Business Britain has launched a new online hub designed to help small businesses get started with artificial intelligence in a practical, jargon‑free way.
The hub includes guides and videos covering:
What generative AI actually is
How AI can save time
How to write effective prompts
How to maintain your own voice when using AI tools
There’s also a six‑week “AI for Small Business” online course, plus webinars and expert sessions aimed at demystifying AI and helping businesses identify where it could add real value.
Buy Now Pay Later – New FCA Rules Coming
From 15 July 2026, Buy Now Pay Later (BNPL) agreements will fall under full FCA regulation for the first time.
BNPL lenders will need to meet the same standards as other consumer credit providers, including:
Clear, upfront information for customers
Mandatory affordability checks
Better support for customers in financial difficulty
Access to the Financial Ombudsman Service for complaints
For businesses using third‑party BNPL providers, this may lead to changes in how customers interact with checkout and payment processes. It’s important to stay informed, as compliance failures by providers could reflect on your business.
Sustainable Farming Incentive – Simpler Scheme Announced
The government has announced a simpler and more stable Sustainable Farming Incentive (SFI), reducing the number of actions from 102 to 71, with payments capped at £100,000 per year.
Applications will open:
June 2026 for small farms and those without existing ELM agreements
September 2026 for all farmers
Further details are expected later this year.
Business Rates Relief for Pubs and Live Music Venues
New guidance has been released on business rates relief for pubs and live music venues in England for the 2026/27 tax year.
Eligible properties will receive:
A 15% reduction in business rates for 2026/27
Rates frozen in real terms for 2027/28 and 2028/29
Relief should be applied automatically by local authorities, but businesses may want to check that their property use is correctly recorded to ensure eligibility.
Final Thoughts
While many of these changes won’t have an immediate impact, they all point to areas where early awareness and planning can make a real difference. Whether it’s upcoming regulation, new reliefs, or opportunities to improve efficiency and staff benefits, staying informed helps you stay in control.
If you’d like tailored advice on how any of these updates affect your business, please get in touch — we’d be happy to help.
