Only four in 10 (40%) small and medium enterprise (SME) owners feel that SMEs are a high priority to the current Government, research from Shawbrook has revealed.
The findings revealed that 42% of SMEs said the incoming NIC hikes are going to negatively impact them, while a third (33%) said that the Autumn Budget last year forced them to increase the price of their goods or services.
In addition, over a third of SME decision-makers backed tax breaks to support reinvestment (36%) and R&D (34%).
Skill shortages remained a significant concern, with 34% urging more skills programmes and 28% calling for Government action to attract overseas talent.
Regulatory burdens were also a major issue, with 31% of SMEs seeking a reduction in red tape – with nearly half (49%) supporting apprenticeship levy reforms.
54% welcomed the Corporation Tax freeze, and 50% endorsed the onging planning reforms.
Neil Rudge, chief banking officer, commercial at Shawbrook, said: “Our latest research highlights the key concerns facing SMEs in navigating the current economic landscape.
“There is a clear appetite for tax and skills development initiatives, and it’s encouraging to see that some Government measures – such as the freeze on corporation tax and apprenticeship levy reforms – are being positively received.
“With red tape at the top of business concerns, the Chancellor’s commitment and ambitious plans are likely to spark optimism among business leaders who have been waiting for decisive action to drive growth across the country.
“While the ‘proof will be in the pudding,’ the urgency behind the Chancellor’s plans will be particularly encouraging for high-growth businesses, who will be pleased to hear the government’s desire to make the UK ‘the best place for entrepreneurs.’
“SMEs remain the backbone of the UK economy, and it is vital that policies continue to support their ability to invest, innovate, and grow.”
