"More than three-quarters (76%) of business finance specialists say the Government's policies have had a negative impact on the UK's 5.5m small and medium-sized enterprises (SMEs), with the situation predicted to worsen at the Budget. The new research finds that the criticisms of the Government's impact on SMEs has grown, rising from 70% last quarter. iwoca's Q3 2025 SME Expert Index, a survey of SME finance brokers, reveals that only 3% say the current Government has had a positive impact on the UK's small and medium-sized firms."
"With the Chancellor set to announce her Autumn Budget on 26 November, two-thirds (66%) of SME finance experts predict it will have a negative impact on the businesses they support, compared to just one in ten (10%) saying it will improve the situation. When asked what measures would most positively impact small and medium-sized firms, brokers cite stronger business rates relief (39%) and a reduction in corporation tax (35%) as their top priorities."
"Following the Budget last year, iwoca's SME Expert Index found that the number of brokers reporting pessimism among their SME clients about the future more than doubled, rising from 15% in Q2 2025 to 34% in Q3. In addition to concerns about the upcoming Budget, small business owners are facing rising costs and a challenging economic environment. Nearly half (48%) of brokers cite rising running costs as their main concern, with a quarter (25%) pointing to political uncertainty - up sharply from just 5% last quarter."
Seventy-six percent of business finance specialists report that government policies have negatively affected the UK's 5.5 million SMEs, up from 70% last quarter. Only 3% say the current Government has had a positive impact on small and medium-sized firms. Two-thirds of SME finance experts predict the upcoming Autumn Budget will harm the businesses they support, while 10% expect improvement. Brokers identify stronger business rates relief (39%) and a reduction in corporation tax (35%) as top priorities. Broker-reported pessimism among SME clients rose from 15% to 34% after last year’s Budget. Rising running costs (48%), political uncertainty (25%), persistent inflation expectations (85% expect ≥3% by end-2025), and recession concerns persist. The Q3 2025 SME Lending Thermometer stands at 5.15.
Read at London Business News | Londonlovesbusiness.com
Unable to calculate read time
Collection
[
|
...
]