On 27th May 2024, 120 business leaders signed a letter to The Times voicing their support for a Labour Government ahead of the upcoming General Election.
The letter stated that the General Election could offer a chance to exit a prolonged period of economic instability and stagnation.
In response, Theo Chatha, chief financial officer at Bibby Financial Services (BFS), outlined what small to medium enterprises (SMEs) might want from the next Government.
Chatha said: “SMEs are telling us three things they want of the next Government: tax incentives, greater access to affordable finance and support with energy costs.
“It’s clear, therefore, that the SME vote will be won by the party able to convince business leaders that these pertinent issues will be front and centre of their policies.
“While the recent fall in inflation will be welcome by businesses across the country, many are holding back investment until after the General Election, and others until interest rates reduce.
“Whatever the outcome of the election, the economic and political certainty that many businesses are looking for may be around the corner, so we could see a surge in capital expenditure this summer, which will undoubtedly act as a shot in the arm for the UK’s longer-term economic prospects.”
BFS’ Q1 2024 SME Confidence Tracker data found that 37% of UK SMEs believed Labour would best serve the interests of businesses.
This compared with 22% who believed the Conservatives were the party for business, with 20% unable to identify a favoured political party.
More than two-fifths (43%) of SMEs were holding back capital expenditure until after the election.
When asked about measures and reforms they’d like to see from the next Government, 61% of SMEs called for further tax incentives, followed by access to low interest loans or grants for business expansion and job creation (47%), and support with energy bills (46%).
