Small and medium-sized enterprises (SMEs) across the UK are calling for urgent government action to ease mounting economic pressures, according to new research by Shawbrook. The findings reveal widespread dissatisfaction among SME leaders and a clear list of policy priorities they believe are essential to support growth, investment, and resilience in a challenging economic environment.
The research highlights a prevailing sense of neglect, with only 40% of SME leaders believing their businesses are a high priority for the current government. This sentiment is compounded by rising concerns over policy decisions and their direct impact on business operations.
Among the top issues facing SMEs is the forthcoming increase in National Insurance contributions, with 42% of business leaders warning it will negatively impact their companies. A third of SMEs also reported that last year’s Autumn budget would force them to raise prices for their goods or services—adding to the cost pressures already facing consumers.
Tax policy emerged as a focal point in the research, with over a third of SME decision-makers advocating for tax breaks to support reinvestment (36%) and research and development (34%). Meanwhile, regulatory burdens continue to weigh heavily, with 31% of SMEs calling for a reduction in red tape to help them navigate an already complex business landscape.
Skills shortages remain a critical challenge, as 34% of respondents called for more skills training programmes, and 28% urged the government to take further steps to attract overseas talent. Support for targeted reforms was also strong: nearly half (49%) of SME leaders back reforms to the apprenticeship levy, while 54% welcomed the recent freeze on corporation tax. Planning reforms were endorsed by 50% of SMEs, signalling a desire for streamlined processes that can unlock growth opportunities.
Neil Rudge, Chief Banking Officer, Commercial at Shawbrook, said the findings underscore a sense of urgency among SMEs.
“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,” he said.
“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,” Rudge added. “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.”
