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How the New UK Budget Could Affect Business Marketing and Advertising Spend in 2025

The latest UK Budget has landed, and businesses across the country are already working out what it means for their bottom line. Budgets shape confidence, spending behaviour, and the choices companies make about everything from staffing to marketing. For many businesses, marketing is one of the first areas affected when costs rise or economic uncertainty increases. At Novus Marketing Solutions, we want to break down what the new Budget could mean for businesses and how it might shape their advertising decisions in the months ahead.


Red briefcase with scratches sits among scattered newspapers titled "UK Budget," on a beige background. Papers appear in motion.

1. Business Rates Relief Gives Some Firms Breathing Space

The government has confirmed changes to business rates relief for retail, hospitality, and leisure businesses. For many smaller companies, this offers some much needed breathing room. Lower overheads can free up cash that may be reinvested into areas that support growth. This includes design updates, website refreshes, new video content, or seasonal campaigns.


What this means for marketing teams

  • Companies that benefit from the relief may feel more confident increasing their marketing activity.

  • It allows smaller businesses to maintain or restart marketing that had been paused during tougher months.

  • Agencies like Novus could see more enquiries from high street brands, hospitality firms, and experience based businesses.


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2. Rising Operating Costs May Tighten Some Budgets

Despite the relief for some sectors, the Budget highlights ongoing challenges. Many businesses continue to face higher costs across wages, materials, energy, and supply chains. When outgoings rise, discretionary budgets can be squeezed, and marketing is unfortunately one of the first areas to come under scrutiny.


How this affects marketing teams and budgets

  • Some businesses may shift from large, expensive campaigns to smaller, more strategic content packages.

  • Marketing managers may be asked to justify every pound spent, increasing the demand for measurable results and clear return on investment.

  • Creative agencies may be asked for flexible plans, scalable content packages, or shorter retainers.


Opportunity for this environment benefits agencies that can provide high impact work that stays cost efficient. Video shorts, social campaigns, template-based content, and performance-focused website updates can all offer strong value without high upfront costs.


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3. Economic Uncertainty Encourages Smarter, Not Smaller, Marketing

The Budget highlights that inflation and cost-of-living pressures are still affecting households and consumer behaviour. When people spend less, businesses often react by cutting their advertising. However, history shows that brands that stay visible during uncertain times often perform better in the long run.


What does this mean for marketing strategy?

  • Instead of pausing activity, businesses benefit from refining it.

  • Strategic marketing becomes more important than high-volume posting.

  • Businesses may favour targeted campaigns that speak directly to their strongest customer groups.

  • Story-led videos, brand refreshes, and content built around trust and clarity become more valuable.


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4. Sector-specific impacts May Shift Advertising Spend

Some industries face more pressure than others. In particular, sectors affected by increased taxation or tighter regulation, such as gambling, may reduce advertising spend significantly. This can alter the competitive landscape in the wider marketing world and change where agencies look for new opportunities.


Impact on marketing agencies

  • Some industries will reduce marketing spend immediately.

  • Others, particularly those less impacted by tax changes, will maintain or increase their activity.

  • Agencies can focus their outreach on industries that benefit from stability or relief in the new Budget.


5. A Greater Demand for Proving Results

When budgets tighten, marketing teams are expected to demonstrate performance clearly. This increases the importance of data, reporting, and optimisation.


How this shapes marketing decisions

  • Businesses will want to see results from every campaign.

  • Agencies will need to use analytics, performance reviews, and clear reporting to justify ongoing spend.

  • Creative work that communicates value clearly, such as explainer videos or conversion focused web pages, becomes even more important.


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6. Why Now Is the Time to Refine, Not Retreat

While the Budget brings challenges, it also brings opportunities. The businesses that adapt quickly and continue communicating with their customers will be the ones that stay competitive. Marketing does not need to stop. It needs to work smarter.


At Novus Marketing Solutions, we help businesses create content, campaigns, and websites that stay effective during changing economic conditions. With the right strategy, even a smaller budget can go a long way.



The new UK Budget creates winners and losers, but the core message for businesses is clear. Marketing needs to be strategic, measurable, and meaningful. Whether companies choose to scale back or reinvest, the brands that stay visible and communicate well are the ones that continue to grow. By planning ahead and focusing on the work that creates real impact, businesses can navigate the months ahead with confidence.


Contact us to get started


Ready to adapt your marketing strategy to the new Budget? The Novus team is here to help.

How the New UK Budget Could Affect Business Marketing and Advertising Spend in 2025

How the New UK Budget Could Affect Business Marketing and Advertising Spend in 2025

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The power of testimonies

  • Novus
  • Apr 26, 2022
  • 3 min read

We’re brilliant! So says us…


We’re bound to say that, aren’t we? Our opinion of the work we deliver is always going to be biased.


Therefore, social proof and third-party testimonies should be your focus, because these will give your customers a much better idea of the quality of work you deliver. It’s common sense and the reason why, as consumers, we rush to sites such as TripAdvisor and Trustpilot for real people’s feedback on a business.


Research shows that 97% of people feel content that recommends a company (or not) is more convincing when it’s user-generated.


Person looking at and leaving a review of the food they've just eaten at a restaurant

Lots of smaller companies, however, overlook or forget the power of customer case studies, reviews and recommendations. They spend a lot of time and money on advertisements and promotional activity, then forget that their greatest asset is already sitting there. That’s not to say you should only focus on gathering the thoughts of your present and past customers, with no thought to reaching new audiences, but there should definitely be a healthy mix of the two.


Despite best intentions, some companies in technical sectors, for example, try to describe the work they do and the services they offer, but they do this in their language and through their eyes. In fairness, it’s sometimes difficult to see any business through the eyes of someone who has no idea what it does if they work within that same business 40+ hours each week. Case studies and customers’ first-hand accounts of their interaction with your business are unlikely to contain industry jargon or terms that are unfamiliar with the wider public; they will simply describe the problem the customer had and how the company in question eradicated it.


There is the consideration, though, that not every ‘independent review’ is unbiased; some people giving feedback could have ulterior motives. For example, there have been times when competitors of a business have presented themselves as customers of their rivals and given unjustified poor reviews to try and inflict reputational damage. It happens.


All that said, if you’ve met your customers’ expectations—particularly so if you’ve exceeded them—there’s no reason why they wouldn’t recommend you to others and give you a good ‘report’. Don’t be afraid to ask your clients for feedback because you fear getting a negative response. Even if there were aspects of their experience they weren’t overly keen on, wouldn’t you rather know about these things so that you can rectify them for future clients? Typically, customers, if they’ve agreed to be interviewed, will be complimentary about you.


You can gather clients’ case studies via a questionnaire or by video interview. With the latter, try and give your client the freedom to describe their experience. If it’s obvious that you’re steering the conversation with loaded and leading questions, this will reduce the credibility of your clients’ responses.


Woman being interviewed at a table

How the feedback is presented is important. For instance, a case study is typically linear in nature and should be like a mini-story; it needs to first outline the problem the customer had that made them approach your business. Then it needs to describe the solution, and why this approach was thought to be the best course of action to help the client in question. It’s important to show the value/impact this help had, and if you have any evidence or statistics that back up your claims, this will strengthen the case study.


Testimonials are typically shorter in stature and they may centre only on what the customer thinks of your business rather than all the detail surrounding their particular order/experience. Video feedback is very powerful, as people can easily gauge whether the participant is being honest through their body language; however, not all your clients will like the idea of being filmed!


If including quotes from longer-form feedback that your clients have left you, resist the temptation to paraphrase what they said or to reword it in any way. Not only do you risk upsetting the person who gave you the testimonial, if the original quote can be found/viewed in your marketing collateral, you could demolish your credibility and be accused of putting words in their mouth.


In summary, we could tell you of all the fantastic things we do, but it doesn’t mean much coming from us; it needs to come straight from the horse’s mouth. See what our clients think of us…scroll down to the bottom of this page.

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