SMEs growth plans still up in the air after chancellor’s statement on growth
Despite promising UK infrastructure investments announced, many small businesses could still be left with unanswered questions following the chancellor’s speech on growth, leaving many uncertain of their ability to achieve their growth ambitions this year.
Research from Simply Asset Finance, which surveyed 500 UK small business owners before and after the Autumn Budget, revealed that while one in five (19%) SMEs are keen to invest this year, just a third (31%) are confident in the government’s ‘pro-business agenda’.
With UK SMEs still left feeling the aftermath of the Budget, which will see thousands of firms faced with National Insurance increases and National Living wage increases from April, a quarter (25%) now expect a ‘bumpy year ahead’. As a result a third (33%) are expected to increase their costs, while 25% will freeze recruitment.
Among the key asks from government SMEs expected to see in 2025, were:
- Help with high energy costs (33%)
- Reducing red tape (28%)
- Government backed loans for small businesses (24%)
- Better transport infrastructure (19%)
- Support innovation through open finance (15%)
The recently announced government initiatives targeted at large-scale infrastructure investments and national growth could provide a glimmer of hope for businesses seeking to invest in 2025. Many targeted measures have also been designed to boost regions outside the South East and focus on major infrastructure projects, such as the lower Thames Crossing, as well as government support for a third runway at Heathrow. These development plans could set a clearer path for growth for SMEs, but require immediate actions if SMEs are to be supported.
Mike Randall, CEO, Simply Asset Finance: “We simply cannot afford to needlessly delay growth any longer. SMEs still face a tough road ahead, with rising costs making it more difficult to plan for their future. What they now need is certainty and a clear roadmap.
“Too often plans are left dangling in the wind. For example, the investment in northern rail networks that was promised following the HS2 row-back is missing in action, and the Lower Thames Crossing has been more than two decades in the making already. Infrastructure projects, regardless of scale, need to be accompanied by the necessary budget and planning changes that will enable them to be more than just a pipe dream.
“The government must now hold itself accountable for these infrastructure promises with realistic goals, deadlines and expected outcomes. Our future prosperity could very well hinge on the outcome of these initiatives, and the government would do well to ensure SMEs have the funds and means to ensure their success.”