New research from specialist lender Shawbrook shows that UK SMEs are concerned over skill shortages, with over a third (34%) urging the government to expand training initiatives, and 28% believing that the government should do more to attract skilled workers from overseas.
However, UK business leaders are backing recent government efforts to address the issue, with nearly half (49%) supportive of the recent reforms to the apprenticeship levy, 54% welcoming the corporation tax freeze, and 50% endorsing planning reforms aimed at reducing regulatory complexity.
When quizzed on what more the government could be doing, over a third of SME leaders thought tax breaks for reinvestment (36%) and research and development (34%) would provide the necessary boost to their businesses. 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.
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,” noted Rudge.
“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.”
