ALAN Thomas, UK CEO at Simply Business, one of the UK’s largest providers of small business insurance, comments on what the Autumn Statement means for small businesses across the UK:
“The Chancellor’s rush of reforms for small businesses and self-employed people will be well received by many, but concerns remain around whether they can fortify this over-stretched sector.
“Our research revealed that an eye-watering £32bn in late payments is owed to small businesses, and the Chancellor’s introduction of rules for firms bidding for government contracts do very little in the way of helping to recoup the thousands of payments still outstanding. The government itself has said that paying small businesses on time could boost the economy by £2.5 billion annually* – yet decisive action has not been taken.
“The business rates support package, particularly the extension of the business rate relief and freeze in the small business multiplier is a welcome update. But a rise in the standard rate multiplier has been described as ‘disappointing’ by industry leaders, who have pointed to the fact that hospitality businesses broadly operate out of larger premises.
“The Chancellor also failed to commit to increasing energy support for small businesses. Over a quarter of SMEs are spending up to 40% more on energy each month compared to last year. Many were forced to renew long-term contracts at the peak of the market, which has pushed their energy expenditure to levels unheard-of. With the rates now stabilising, the chancellor should review the assistance available to non-domestic users, with a clear focus on assisting smaller businesses in covering essential bills.
“Thousands of small businesses are being held back – not because of apathy or lack of ambition, but because of a set of circumstances which are stretching them to the limit. Nonetheless, in a show of determination which is so characteristic of this sector, our research found that three quarters of SMEs remain confident about the prospects for their business. The Chancellor’s aspiration to ‘supercharge’ the growth of the UK’s SMEs has, for many, missed the mark.”
Read the full SME Insights Report 2023 from Simply Business here.
