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SMEs increasingly see Labour as serving their best interests – Bibby Financial Services

Two-fifths (37%) of small to medium enterprises (SMEs) agreed that the Labour Party would best serve the interests of business, according to research from Bibby Financial Services.

This was an increase on 33% when Bibby last released this data in autumn 2023.

In comparison, 22% felt that the Conservatives would represent businesses best, down from 26% who said this in autumn.

SMEs showed an increase in confidence year-on-year, with 61% predicting an increase in sales over the coming months, compared with 54% in Q1 2023.

One fifth (20%) of SMEs were unable to identify a favoured political party.

When asked what measures they would like to see from the next Government, 61% called for further tax incentives, such as reduced corporation tax and business rates.

Jonathan Andrew, CEO of Bibby Financial Services, said: “There’s little doubt small businesses are more optimistic today than they were at the start of 2023.

“News that the UK avoided a deep recession is a further shot in the arm for business owners who we know are keen to kick-start growth after what has been a turbulent few years. 

“But it’s clear policies announced in the autumn, such as freezing business rates and late payment reforms, haven’t done enough for the Conservative Party to win over the SME population just yet.

“Our SMEs are ambitious and resourceful, so with a general election on the horizon, the Government should use the Spring Budget to inspire the UK’s SME community and present a convincing vision for growth.”