Any job can be made redundant at any time. How this is dealt with depends on the nature of the company ie private one-man show, large corporation etc and the nature of your contract. Most larger organisations have a set procedure for redundancy with a staggered formula of entitlements linked to your length of service but I expect a small business won't use this structure.
Try this link:
http://careersadvice.direct.gov.uk/helpandadvi ce/redundancy/?CMP=KAC-jankw08
But above all, while this is a rumour, do nothing rash - ie don't resign in haste. Make your plans quietly, take the advice mentioned in the link but if your current position suits you and nothing else is worth applying for sit tight for now.
And join a union if you can.