UK small and medium-sized enterprises (SMEs) are poised for the upcoming budget, anticipating significant effects on their growth and innovation investments, according to Simply Asset Finance research.
According to the research, approximately 74% of UK SMEs believe the upcoming budget will directly influence their future growth plans.
Go deeper with GlobalData
Roughly 31% of UK SMEs expect a significant impact, with 13% considering it fundamental.
The current economic climate has already prompted 30% of SMEs to raise prices while 16% have switched to fully remote working or outsourced more business services.
The pressure has led to 16% of SMEs pausing or reducing investment in innovation and growth.
Despite economic challenges, optimism persists among UK SMEs, with more than two in five (42%) expressing a positive outlook for the year ahead.
How well do you really know your competitors?
Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.
Thank you!
Your download email will arrive shortly
Not ready to buy yet? Download a free sample
We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form
By GlobalDataOnly 25% of the businesses intend to borrow for technology investments, and fewer still for market expansion, workforce enlargement, infrastructure upgrades, or machinery investment.
R&D innovation and workforce training via external finance are on the agenda for some SMEs.
SMEs are also urging government action on high energy costs, reduced red tape, and more tax incentives for innovation.
Additionally, they seek closer EU ties, government-backed loans, and improved transport infrastructure.
Simply Asset Finance CEO Mike Randall said: “It’s evident that the government does not yet have the full confidence of UK business, but the budget is an opportunity for that to be tackled head-on. Businesses up and down the UK recognise that the next 12 months offer a real opportunity for them to grow. But they need a helping hand to seize it.
“The OECD [Organisation for Economic Co-operation and Development] recently updated its growth forecasts for 2024 from 0.4% in May to 1.1%. While achieving this requires the success of small and medium-sized businesses, if the UK is to be serious about growth, the investment ambition needs to be much greater. The government needs to recognise the importance of the budget to these growth plans, listen to what businesses need, and take action to support them accordingly.
“By providing targeted support around high energy costs, reducing red tape, and offering tax incentives for innovation, the government can empower SMEs to innovate, grow, and compete locally, nationally, and even globally. By doing that, we can create an environment where SMEs thrive, driving economic growth and innovation.”
