Life After the Budget: What Birmingham Businesses Need to Prioritise Now

The Chancellor’s latest Budget may have avoided major tax hikes on businesses, but for operators across Colmore Business District, the economic and regulatory landscape is still shifting. Rising costs, tightening compliance, and evolving property and contractual obligations mean that businesses must act proactively to protect their finances and operations. We invited RLK Solicitors and Dains Accountants to share their insights on the key areas every business should focus on now to safeguard resilience, manage risk, and prepare for the year ahead.

Life after the budget: What Birmingham Businesses Need to Prioritise Now 
Insights from RLK Solicitors & Dains Accountants 
 

The dust is still settling on the Chancellor’s Budget Statement after weeks of uncertainty.  

Whilst the majority of tax rises in this budget fell on high net-worth individuals rather than businesses there are changes that will affect employers, including increases in the National Living Wage and National Minimum Wage. 

 
Take a stand back and there is a clear direction of travel. Costs are rising, compliance is tightening and businesses will need to take a more proactive approach to managing legal, financial and commercial risk. For operators across Birmingham’s Colmore Business District, now is the time to take stock and protect the business for the year ahead. 

We set out below 4 key areas to prioritise, over the coming months: 

1. Financial pressure and contract resilience 

2. Rising property costs and lease exposure 

3. Tighter HMRC enforcement 

4. Final chance to recover COVID-19 BI losses 

1. Rising Financial Pressures Mean Strong Contracts Matter More Than Ever 

Although there were no major tax increases on businesses announced in the budget the economic outlook remains challenging and financial pressure will continue to build. For Colmore District businesses, where rents and operating costs are already high, tighter margins often lead to disputes, payment issues and supply chain stress.  
 
“When financial pressure increases, poorly drafted commercial agreements are usually the first point of failure. Prevention is far cheaper than litigation.” – Chris Guy, Director at RLK Solicitors 

Now is the time to ensure that every commercial agreement contains: 

• Clear payment terms 

• Practical termination rights 

• Sensible notice periods 

• Effective dispute-resolution mechanisms 

This applies to a range of businesses operating across the Colmore District, from professional practices negotiating service contracts, to hospitality operators agreeing terms with food and beverage suppliers. Alongside legal review, forensic accounting support can, test financial resilience and identify areas to improve value in contracts. IT can also quantify losses and provide crucial evidence if disputes arise – combining commercial, financial and legal insight to protect businesses in a tougher economic environment. 

2. Rising Property Costs and Taxation Make Lease Reviews Essential 

From 2027/28, the tax burden on property ownership is set to rise, including higher rates on property-related income and a new High Value Council Tax Surcharge for properties valued above £2m from April 2028.  
 
Although many Colmore District occupiers lease their premises, these changes still matter. When landlords’ cost bases rise, rent and service charges inevitably follow. This is particularly significant for hospitality, leisure and retail businesses in the district, which typically occupy high-spec premises with substantial service charge obligations. 

“We see so many SMEs fail to exercise break clauses correctly. In this market, that exposes them to years of additional rent.” Satish Jakhu, Director RLK Solicitors 

Every occupier – whether a Colmore Row restaurant or a Snow Hill professional practice – should review: 

• Break clauses and compliance conditions 

• Rent review mechanisms 

• Repairing and dilapidations obligations 

• Service charge provisions 

• Rights to challenge landlord costs 

From a financial perspective, the impact of rising occupancy costs can be severe. 

“Understanding your contracts and how you can extract value or limit potential disputes will be important in the next 12 to 24 months. It is also key that businesses should ensure that they maintain the records and information needed to best deal with potential contract disputes.  Even small changes in rent or service charges can have a large impact on cashflow, particularly for hospitality and leisure operators.” – Stephen Greenway, Partner at Dains 

A combined legal and forensic accounting review gives businesses the clarity needed to plan ahead and avoid costly surprises. 

3. HMRC Enforcement Is Tightening – Businesses Must Be Audit-Ready 

The Budget confirms that HMRC intends to significantly increase enforcement activity, with a target of raising £10 billion in additional tax revenue by 2029/30. The message is clear: compliance will be more closely monitored, and mistakes more costly. 

Key changes include: 

• Mandatory e-invoicing for all VAT invoices from April 2029 

• Tougher rules around umbrella companies and payroll compliance 

• Increased scrutiny of PAYE, NICs and benefits-in-kind 

• Greater use of digital data-driven prompts  to identify irregularities 

For businesses in the Colmore District – particularly in finance, tech, professional services, hospitality and retail – strengthening internal controls is now essential. Forensic accountants can help by reconstructing or verifying financial records, identifying compliance weaknesses and preparing businesses for potential HMRC scrutiny. Legal and tax advisers can support in responding to enquiries, mitigating penalties and navigating complex disputes if they arise. 

“This marks a fundamental shift in HMRC’s focus on compliance and transparency. Ensuring tax governance is adequate as well as proactively reviewing internal policy documents will be of high importance for businesses going forward to reduce tax risk and penalty exposure. Depending on the size of the business, care should be taken to ensure that existing policies and frameworks meet with HMRC’s expectations as these vary from business to business, and where they do not ensure they are revised prior to 2029 to stay ahead of the curve” – Rebecca Jones, Tax Partner at Dains 

A proactive approach to compliance is no longer optional; it is critical to protect cashflow and reputation. 

4. Final Opportunity to Recover COVID-19 Business Interruption Losses 

The deadline for COVID-19 Business Interruption (BI) Insurance claims is approaching. After March 2026, businesses will lose the legal right to claim for losses from government-mandated shutdowns. 
 
This affects a wide range of Colmore District organisations, especially: 

• Hospitality venues 

• Retail and leisure operators 

• Health and wellness businesses 

• Food and beverage operators 

“This is the last window for businesses to recoup COVID-19 losses. After the deadline passes in March 2026, those rights are gone for good.” Chris Guy, Director, RLK Solicitors 

Successful BI claims require two elements: 

• legal analysis of policy wording 
• forensic accounting to calculate lost profits and increased costs  
 
For many businesses still recovering from the pandemic, this may be the final opportunity to access meaningful compensation before the claim window closes permanently. 

What Birmingham Businesses Should Do Next – A Practical Checklist 

✔ Contracts & Agreements 

• Review key contracts 

• Strengthen termination and breach clauses 

• Identify financially vulnerable partners 

✔ Commercial Property 

• Audit leases and diarise break clause deadlines 

• Review rent reviews and repairing obligations 

• Scrutinise service charge accounts 

✔ Financial & Compliance 

• Prepare for digital VAT invoicing 

• Check payroll, NIC and employment-tax compliance 

• Ensure records are HMRC-ready 

✔ COVID-19 BI Claims 

• Check policy wording immediately 

• Gather financial data from closure periods 

• Seek legal & forensic support before the deadline 

 
The next 12 months are likely to be challenging. If you operate in or around the Colmore District, taking early action on your contracts, leases, compliance position and any remaining COVID-19 business interruption claims will help stabilise costs and protect your business. 

Drawing on legal, forensic and tax expertise gives you a clearer, more rounded view of your risk position. 

If you would like to discuss any of the issues raised in this article, our teams at RLK Solicitors and Dains are available for a confidential conversation.