Business owners are hoping Rachel Reeves takes action to tackle the stagnant economy and boost confidence when she delivers her Spring Statement next week, says Steven Mason, a senior manager at insolvency and corporate recovery practice Inquesta.
He said the chancellor has an opportunity to outline policies that set a course for an economic recovery, with SMEs looking for measures to simplify tax rules, lower business rates, provide better access to affordable finance, invest in infrastructure and reduce red tape.
Steven said: “As Rachel Reeves prepares to deliver her Spring Statement, businesses are watching closely for announcements that could improve the nation’s economic outlook.
“With economic growth sluggish, and borrowing costs on the rise due to higher-than-expected interest rates, many are hoping that the statement will include vital reforms to ease pressure on businesses.
“The business community is hopeful that the government prioritises regulatory simplification, clearer fiscal policies, support for SMEs and targeted infrastructure investments.
“The increase in employers’ national insurance contributions, effective from April 6, has raised concerns among small business owners. A reconsideration or reduction of this hike in the Spring Statement would provide immediate relief, although it is hard to envisage such a dramatic government U-turn.
“Businesses are looking for clarity on how the government plans to tackle stagnating growth. The Spring Statement provides an opportunity for the chancellor to outline policies that will boost business confidence and set a course for economic recovery. Small businesses would appreciate any moves that simplify tax rules, lower business rates and provide better access to affordable finance.
“Currently, business rates relief for retail, hospitality, and leisure sectors stands at 75 per cent, set to decrease to 40 per cent after March 31 for the 2025/26 tax year. An anticipated overhaul in the 2026/27 tax year proposes two permanent, lower rates for these sectors. Small businesses are advocating for transitional support to bridge the gap until these reforms are implemented.
“Regulatory reform is high on the agenda for many industry groups. The government has already taken steps to simplify regulations, with Reeves pledging to scrap unnecessary financial market reporting rules, particularly those inherited from EU legislation.
“This move has been welcomed by the financial services sector, where excessive red tape and compliance costs are a constant challenge. By cutting back on these regulations, the government can help companies operate more efficiently and create a more business-friendly environment.
“Lastly, there is a growing call for greater investment in infrastructure. Business leaders argue that improving regional connectivity, boosting productivity and investing in long-term infrastructure projects will create the conditions necessary for sustained economic growth.”
Inquesta operates nationwide from offices in Manchester and Leeds.
