According to new research from Bibby Financial Services (BFS), UK SMEs are focusing on tax incentives and access to finance as vital areas to unlock growth ahead of the anticipated "painful" Autumn Budget. The BFS Q3 2024 SME Confidence Tracker, surveying 1,000 businesses, reveals renewed optimism, with 68% of SMEs expecting sales growth over the next six months. While inflation has stabilized, and interest rates have dropped, SMEs are calling for government support, particularly in better tax incentives and improved access to low-interest financing, to drive capital expenditure and business expansion.
- Following the General Election and a drop in interest rates, SME leaders are showing renewed confidence, with 68% expecting sales growth and 52% more likely to invest in their businesses.
- The potential rise in capital gains and inheritance taxes in the Autumn Budget has prompted 87% of SME leaders to call for better tax incentives to encourage growth.
- Nearly half of SMEs (49%) find the external finance landscape difficult to navigate, with many seeking government support for clearer financial education resources and reforms to improve access to funding sources like the Bank Referral Scheme.
Read more here or the full BFS SME Confidence Tracker Q3 report is available to download here.
