Economic uncertainty and Rachel's Budget cost increases top growth concerns - London Business News | Londonlovesbusiness.com

"New data published today by leading alternative lender ThinCats shows that ahead of the Chancellor's Budget later this month, confidence among small and medium sized enterprises (SMEs) in the Government's ability to create an environment for growth has dropped in the past year, slipping from almost half of businesses (49%) to 39% today. While confidence is much higher among mid-sized companies (employing 50-249 people) with 50% expressing confidence, the data among microbusinesses (1-9) 26% and sole traders (23%) shows real dissatisfaction within the private sector."

"Three-quarters (75%) are hopeful heading into 2026, again this is significantly higher among mid-sized businesses compared to smaller firms. When asked what the biggest challenges to growth are, four-in-ten (39%) point to the general economy with consumers and businesses choosing not to spend or delaying investment. There is also understandable frustration and concern from added costs from National Insurance and national minimum wage increases (36%) alongside inflation (36%)."

"Over one-quarter (26%) also highlighted higher energy and fuel costs with 22% also frustrated at the inability to recruit skilled workers. Again, there are variations across businesses by size. Inflation, skills shortages, balancing investment and global tariff uncertainty are challenges being felt far more acutely among businesses operating in the mid-market, while the weak economy and access to finance are more acute among smaller businesses and sole traders."

Confidence among SMEs in the Government's ability to create an environment for growth has fallen from 49% to 39% over the past year. Mid-sized companies (50–249 employees) report higher confidence at 50%, while microbusinesses (1–9 employees) and sole traders record just 26% and 23% respectively. Seventy-five percent of businesses remain hopeful about growth into 2026, with optimism strongest among mid-sized firms. The leading growth challenges are a weak general economy (39%), rising National Insurance and minimum wage costs (36%), inflation (36%), higher energy and fuel costs (26%), and difficulty recruiting skilled workers (22%). Larger mid-market firms feel inflation, skills shortages and global tariff uncertainty more acutely, while smaller firms and sole traders are more affected by a weak economy and access to finance.

Read at London Business News | Londonlovesbusiness.com