Key Takeaways from the 2025 UK Budget for IT Hardware Buyers

While there were no direct changes to IT-specific duties or technology levies, several Budget elements indirectly shape hardware pricing for UK businesses:






1. Corporation Tax Freeze Encourages IT Investment

The government's decision to freeze Corporation Tax at 25% maintains a stable environment for planned hardware refreshes.

  • Many businesses delayed upgrades during 2024-25 due to inflationary pressures.
  • A stable tax environment may accelerate postponed laptop, server, and infrastructure refreshes - increasing demand later in the year.
  • Higher demand across the UK can contribute to rising prices if global stock remains constrained.

2. Full Expensing Extended - Big for Server & Infrastructure Buyers

The Budget extended full expensing for qualifying plant and machinery.

For IT, this covers:

  • Servers
  • Storage systems
  • Networking hardware
  • Some on-premises infrastructure

This effectively makes investing in infrastructure more tax-efficient - but it may also create short-term demand spikes that push up channel pricing and deplete popular SKUs.

3. Pound Sterling Volatility Still Matters

Budget forecasts show continued GBP volatility against USD, which is critical because:

  • The vast majority of IT hardware is priced in dollars at distributor level.
  • Even minor currency swings can shift landed UK pricing by several percent.

KnowledgeBus pricing data has shown that GBP weakness can add 3-7% to UK hardware prices even when the underlying product cost remains stable.

4. Import & Logistics Costs Have Stabilised - But Not Fallen

The Budget forecasts lower inflation overall, but logistics costs (especially for high-value electronics) remain elevated vs pre-pandemic levels.

  • Sea freight is stable but still inflated.
  • Air freight remains volatile, affecting premium laptop and workstation stock.
  • Bonded warehousing and distributor insurance fees remain high.

These add pressure on UK distributor price lists - especially for high-volume business devices.

Beyond the Budget: Other Market Forces Affecting IT Hardware Pricing

The UK Budget is just one factor. In the IT channel right now, several bigger trends are influencing hardware prices:

5. Windows 10 End-of-Support Is Driving Hardware Refresh Cycles

With Windows 10 support ended in October 2025, thousands of UK organisations are:

  • Refreshing aging laptops
  • Consolidating fleets
  • Upgrading to Windows 11-compatible devices

This is pushing demand for commercial lines like Dell Latitude, HP ProBook/EliteBook, and Lenovo ThinkPad - with certain configurations already showing 5-12% price creep in Q4 2025.

6. AI-Ready Devices Are Inflating Averages

The channel is increasingly prioritising:

  • AI-enabled CPUs
  • Neural processing units (NPUs)
  • Higher RAM default configurations

These cause the average selling price (ASP) of laptops to rise even if the “traditional” models have not increased in cost.

7. SSD and Memory Pricing Is Climbing Again

Component manufacturers have begun tightening supply on:

  • DRAM
  • NAND flash

This has already lifted pricing for SSD-based laptops and servers - something buyers will feel across H1 2026.

8. Supplier Margin Inflation Is Quiet but Real

KnowledgeBus benchmarking throughout 2025 continues to show rising supplier markups:

  • Consumer lines: fairly stable
  • Business laptops: increasing
  • Accessories, peripherals, and consumables: often excessive, sometimes 300%+ without visibility tools

This means the IT channel may be passing hidden inflation onto buyers - unless they have a way to verify trade pricing.

What This Means for UK Business Hardware Buyers in 2025-26

Price movement will remain uneven

Some lines will rise sharply (AI-ready devices, memory-rich configs), while others may soften if oversupply hits (entry-level desktops, older laptop generations).

Budgeting will be harder

Currency movement + supplier pricing variation make forecasting difficult.

Timing is everything

Buying at the wrong time can add 5-15% to costs with no difference in performance or product.

How KnowledgeBus Helps Businesses Stay Ahead of Pricing Volatility

With so many variables shaping UK hardware pricing, procurement teams need clarity, consistency, and real-time visibility. KnowledgeBus provides exactly that.

1. Live Trade Pricing Benchmarking

Instantly compare supplier quotes against real trade pricing for hundres of thousands of IT products.

2. Detect Inflated Supplier Markups

Identify hidden markups on:

  • Laptops
  • Monitors
  • Docking stations
  • Cables & peripherals
  • Servers & components

Average savings identified across UK businesses: 25%.

3. Track Price History to Time Purchases

See whether pricing is trending:

  • Up due to component costs
  • Down due to oversupply
  • Flat but about to rise

This helps avoid “panic buys” and emergency spend.

4. Benchmark Framework or Contract Pricing

Verify whether your negotiated discounts or cost-plus agreements are still being honoured.

5. Build Evidence for Finance

Exportable reports provide:

  • Audit-ready justification
  • Value-for-money evidence
  • Visibility for CFOs and IT leaders

Conclusion: Budget Stability Doesn't Mean Price Stability

The 2025 UK Budget offered economic continuity, but the IT hardware market remains anything but steady.

With global component shifts, demand surges, currency movements, and supplier margin inflation all in play, organisations need better visibility than ever before.

KnowledgeBus helps UK businesses take back control - with real-time pricing intelligence that cuts costs, strengthens governance, and improves value on every purchase.

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