Spring Statement 2026: what it means for UK SME funding

The Spring Statement is rarely a Budget in disguise, and 2026 was no exception. For UK SMEs weighing up a vehicle replacement, a new piece of plant or a working-capital top-up, the headline takeaway is that the Annual Investment Allowance remains at £1 million and full expensing for qualifying plant and machinery is unchanged.

What's actually changed

• No movement on Corporation Tax (still 25% above the £250k profit threshold).
• The Bank of England's bank-rate trajectory remains the dominant cost driver for variable-rate facilities.
• HMRC's late-payment interest is now 8.5% — a real incentive to fund VAT and tax bills externally rather than miss a deadline.

What it means for asset finance

For most owner-managed businesses, the calculation is the same as it was last quarter:

1. Cash-conserving structures (hire purchase with a balloon, finance lease, operating lease) remain tax-efficient when paired with the AIA or full expensing.
2. Refinance and sale-and-leaseback are still the fastest way to release equity from existing assets without disturbing trading cash flow.
3. Working-capital loans between £25k and £250k continue to fund the gap between supplier payment terms and customer remittances.

If your accountant has already modelled full expensing into next year's capex plan, nothing in the Spring Statement breaks that plan. If they haven't, now is the moment.

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If you want a 60-second view on what's eligible for full expensing and how it can be financed, get an indicative quote or request a call back. FCA-regulated. Soft search only. No obligation.