The Autumn Budget has left the UK horticulture sector reeling. With major tax hikes and rising costs, small and family-owned garden businesses are bracing for a tough year. Recent data from the Horticultural Trades Association (HTA) paints a bleak picture, forecasting significant profit losses and potential job cuts.
Budget Pressures Threaten Green Business Growth
The Autumn Budget’s changes to national insurance contributions (NIC), the National Living Wage (NLW), and inheritance tax (IHT) hit horticulture hard. According to HTA’s recent surveys, businesses expect a 21% drop in net profits by 2025. This translates to a £134 million collective loss for HTA members.
Faced with these pressures, two-thirds of horticulture businesses plan to raise prices or delay essential investments. Many are also considering recruitment freezes. Business owners describe the financial blow as “colossal,” comparing it to losing their busiest sales month. The reality is grim, with some businesses fearing they may not survive.
Family-Owned Garden Centres at Risk
Inheritance tax changes add to the struggle, especially for family-run garden centres. From April 2026, IHT relief on business assets will be capped at £1 million per individual. Any value above this faces a 20% tax rate, potentially forcing families to sell land or even entire businesses.
Owners worry about how these taxes will affect succession planning. Some fear losing decades of hard work. One business owner admitted the changes left them questioning the future of their enterprise, saying, “Why bother if profits just get taxed away?”
The HTA isn’t staying silent. They’ve hosted expert-led webinars and continue lobbying the government for support. But for many in the industry, the future remains uncertain as they navigate rising costs, tax changes, and an unpredictable economic landscape.
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