A survey of senior bosses at small firms has found that most believe the Government is not on their side amid tax increases and rising costs. The poll, conducted for the Centre for Policy Studies (CPS), revealed that 57% of the 500 business leaders surveyed felt the Government was working against them.
Business leaders voice concerns
Robert Colvile, head of small business and entrepreneurship at the CPS, said: “Small businesses make up the overwhelming majority of British businesses, and employ millions of people. When those running them don’t feel that the Government is on their side, politicians need to sit up and listen.
“With the Budget approaching, it is critical we see policies that relieve rather than add to the burdens small businesses are facing – not least on the key issues of energy costs, business rates and employment costs.”
Tax and regulatory pressures
Businesses raised concerns about energy costs, business rates, employment costs, VAT and a shortage of skilled workers. More than half of those polled (54%) felt that the level of tax, regulatory compliance and administrative requirements had increased since Labour came to power, compared to just 4% who felt it had decreased.
In the 2024 autumn Budget, then-chancellor Rachel Reeves announced the rate of employers' National Insurance Contributions would increase from 13.8% to 15% from April 6, 2025. There have also been increases in the minimum wage.
Calls for action ahead of Budget
Chancellor John Healey is under pressure to help struggling businesses when he gives his maiden Budget on October 28.
James Crouch, head of policy and public affairs research at pollster Opinium, said: “More than twice as many small to medium-sized enterprises say the Government isn’t on their side as say it is. But the jury is still out on which party best represents their interests, leaving an opportunity for all sides to respond to the needs of Britain's small businesses.
“Despite the pressures they face, many businesses expect their revenues to grow. Political leaders now have an opportunity to show how their policies can help businesses unlock that growth.”
A Treasury spokesman said: “We are on the side of businesses. The Chancellor is showing this by giving them the breathing space to invest, grow and manage cost pressures, backing firms through business rates cuts, a cap on corporation tax, and a £4.3 billion support package to limit bill rises.
“As has always been the case, decisions on tax are a matter for the Chancellor to set out at fiscal events, rather than routinely commenting on rumour, speculation or proposals.”
