A recent study by Novuna Business Finance reveals that 86% of small business owners in the UK are apprehensive about potential announcements in the upcoming Autumn Budget that could adversely affect their growth and financial stability.
Among those surveyed, key concerns include anticipated increases in national insurance (49%), VAT (48%), and income tax (50%). Many traditional sectors are also worried about flexible working arrangements, while the property sector is particularly anxious about potential increases to Capital Gains Tax and Inheritance Tax and the ripple effects on the market.
Go deeper with GlobalData
Despite these fears, a slight increase in confidence has emerged, with the percentage of small businesses expecting growth rising from 30% to 35% in the wake of the recent General Election. This marks a two-year high in confidence, following a prolonged period of stagnation during the cost-of-living crisis.
However, troublingly, 78% of the small businesses predicting significant expansion in the coming three months express concerns that the Autumn Budget could hinder their growth plans. The nationally representative survey, which included 1,046 small business owners, showed widespread anxiety across all sectors, with at least 81% citing potential Budget policies that could negatively impact their financial outlook.
Industry-specific concerns include:
- Manufacturing, Transport, and Distribution: 61% are worried about potential national insurance hikes.
- Retail and Property: Some 56% fear rises in income tax, highlighting the importance of consumer confidence and spending power.
- Transport and Distribution and Construction: 68% and 63%, respectively, express significant concerns regarding fuel duty increases.
- Flexible Working and Pay: In the manufacturing and transport sectors, 44% believe that mandatory flexible working could harm their business outlook. Additionally, 42% in hospitality and manufacturing worry about the effects of increased minimum pay rates for low earners. Furthermore, 21% of small businesses are concerned about the impact of parental leave and statutory sick pay from day one of employment on their stability.
- Property Sector: Nearly half (48%) are apprehensive about rises to Capital Gains Tax and Inheritance Tax.
Joanna Morris, Head of Insight at Novuna Business Finance, remarked, “Speculation about the Autumn Budget is rampant, yet the actual content remains uncertain. Our survey highlights the fragile nature of the recent uptick in small business confidence since the General Election. After two years of stagnation, the increase in July coincided with a decline in inflation and reports of modest economic growth in August.
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 GlobalData“The timing of the Autumn Budget is crucial. Small businesses require support to advance their growth strategies. This is a pivotal moment to build on the signs of recovery since July. However, any fiscal changes that increase the cost burden, impose additional regulations, or undermine consumer confidence could lead to a decline in the growth outlook for small businesses in late 2024 and into 2025.”
