UK SMEs split on confidence in Government’s growth agenda

The Chancellor’s Mansion House speech will outline the next phase of the Government’s plan to meet its ambitious growth targets, a key part of which is expected to be further pension reforms aimed at channelling critical funds into UK business and infrastructure. The Treasury anticipates this could free up billions of funding for UK business to drive innovation and growth across the country.

Ahead of the announcement, Simply’s research of 500 UK SME decision-makers reveals the biggest threats SMEs foresee in the coming year, their needs from the Government to achieve their growth ambitions, and—perhaps most tellingly—their mixed confidence in the Government’s commitment to a pro-business agenda, with nearly an even split between those expressing confidence and those who remain sceptical.

The biggest threats SMEs anticipate for their business in the coming year are:

A stagnant UK economy – 45%
High levels of inflation – 37%
High interest rates – 35%
Changes in legislation and regulations – 25%
Supply chain challenges – 17%

The key policies SMEs wanted from the Budget to support growth are:

Help with high energy costs – 33%
Reducing red tape – 28%
More tax incentives for innovation/ investment – 27%
Government backed loans for small businesses – 24%
Support innovation through open finance – 15%

SMEs’ confidence in the Government driving a pro-business agenda:

Very confident – 13%
Somewhat confident – 23%
Neither confident nor unconfident – 31%
Somewhat unconfident – 18%
Very unconfident – 15%

Mike Randall, CEO at Simply Asset Finance, said: “The policy changes announced in the Chancellor’s Budget last month have created significant cost challenges for the UK’s SMEs, many of whom are already operating on tight cash flows.

“Now, the anticipated channelling of vital funding into UK business and infrastructure could give hope for long-term growth, reassuring SMEs that there is a light at the end of the tunnel.

“The Government must recognise that it still needs to rebuild the full confidence of UK business, and by creating a roadway for critical investment in their future, they can only hope to rebuild this. With over 5.6million SMEs across the UK making up 99.9% of UK business, these are firms that have the potential to unlock the growth of the UK and put our economy back on track for recovery. We await the Chancellor’s speech with anxious anticipation, and hope that SME needs have been taken into account in the Chancellor’s plans for growth.”