In response to the UK Autumn budget, entrepreneurs are acting now, ahead of expected tax hikes and policy changes. Confidence has taken a hit, with sentiment sliding across major indicators and tax/volatility fears.

Entrepreneurs across the UK are preparing to reshape their financial strategies ahead of expected tax and policy changes outlined in the November 2025 UK budget, according to new research from Brown Shipley, a UK wealth manager and subsidiary of Quintet Private Bank.

The survey covered a representative sample of 4,000 UK adults (18+) between 16 and 20 January 2026, conducted on behalf of Brown Shipley by Opinium Research.

Changes announced in the budget have triggered a surge in activity among business owners. New data shows that 35 per cent of entrepreneurs plan to accelerate profit extraction ahead of the April 2026 dividend tax rise, bringing forward income while current rates remain more favourable. The budget confirmed that from 6 April this year, dividend tax rates for basic and higher-rate taxpayers would increase by 2 per cent.

The budget also introduced a new £2,000 ($2682) annual cap on salary-sacrifice pension contributions that are exempt from National Insurance, due to take effect from April 2029. In response, 31 per cent of entrepreneurs say they expect to scale back employee pension provision, a shift that could materially reshape benefits structures across smaller, founder-led businesses, the survey reveals.

Exit plans are also shifting. A third of entrepreneurs said they are now less likely to use Employee Ownership Trusts following reductions in capital gains tax relief, prompting a reassessment of succession routes that had previously gained strong traction.

Meanwhile, confidence in long-term planning remains subdued. Twenty nine per cent said the recent Autumn budget has increased their confidence, while 26 per cent report it has weakened it.

There is evidence of declining sentiment across other key indicators, the firm continued. Among entrepreneurs, confidence in their business as the primary store of wealth has fallen from 48 per cent to 41 per cent in the past year, signalling growing unease about the durability of enterprise-driven wealth. Alignment between personal goals and business plans has also weakened, falling from 54 per cent to 48 per cent, suggesting that entrepreneurs are finding it increasingly difficult to balance long-term ambitions with short-term pressures.

Concerns about 2026 risks are also elevated. Fifty per cent of entrepreneurs report being concerned that market volatility will impact their ability to preserve their wealth in 2026, compared with 41 per cent of the wider wealthy UK population. A similar pattern emerges over tax changes, with 51 per cent of entrepreneurs expressing concern about the impact this will have on their ability to maintain their wealth, versus 41 per cent overall.

Yet despite heightened levels of caution and weakening sentiment, many entrepreneurs are taking decisive action, the firm said. Faced with rising uncertainty and a tightening tax regime, entrepreneurs are acting early and reshaping their finances to stay resilient in a more demanding environment.

“Entrepreneurs are reading the signals early. We are seeing a cohort that is not waiting for tax changes to take effect – they are already adapting how they extract profits, structure benefits and plan exits,” Katrina Johnson, head of North region at Brown Shipley, said. “Confidence has clearly softened, and heightened concern around volatility and tax risk is driving a much more proactive mindset. These business owners are reshaping their financial architecture now to stay agile in what they expect will be a more demanding and less predictable environment.”