Small and medium-sized enterprises (SMEs) across the UK are urging the government to take decisive action to stimulate economic growth, with tax cuts and skills development emerging as key priorities. New research from specialist lender Shawbrook shows that over a third of SME leaders believe tax breaks for reinvestment (36%) and research and development (34%) would provide the necessary boost to their businesses.
Amid ongoing economic challenges, SMEs are also calling for greater support to address workforce skill shortages. More than a third (34%) of decision-makers advocate for expanded training initiatives, while 28% believe the government should do more to attract skilled workers from overseas.
In addition to tax relief and workforce concerns, SMEs are highlighting regulatory barriers as a significant hindrance to growth, with nearly a third (31%) seeking a reduction in bureaucratic red tape.
Government policy changes have received mixed reactions from SMEs. While 42% of decision-makers are unhappy with recent National Insurance Contribution (NIC) changes, other policy shifts have been met with optimism. Nearly half (49%) support the recent reforms to the apprenticeship levy, underscoring the importance of tackling skills shortages. Furthermore, 54% of SMEs welcome the corporation tax freeze, and 50% back planning reforms aimed at reducing regulatory complexity.
Neil Rudge, Chief Banking Officer, Commercial at Shawbrook, commented: “Our latest research highlights the key concerns facing SMEs in navigating the current economic landscape.
“There is a clear appetite for tax and skills development initiatives, and it’s encouraging to see that some government measures—such as the freeze on corporation tax and apprenticeship levy reforms—are being positively received.
“With red tape at the top of business concerns, the Chancellor’s commitment and ambitious plans are likely to spark optimism among business leaders who have been waiting for decisive action to drive growth across the country. While the ‘proof will be in the pudding,’ the urgency behind the Chancellor’s plans will be particularly encouraging for high-growth businesses, who will be pleased to hear the government’s desire to make the UK ‘the best place for entrepreneurs.’ SMEs remain the backbone of the UK economy, and it is vital that policies continue to support their ability to invest, innovate, and grow.”
