SMEs worried about access to finance ahead of General Election

46 per cent of UK small- and medium-sized enterprises (SMEs) see access to finance as the most critical issue they face, new research finds.

SME funder Bibby Financial Services commissioned a survey to gauge businesses’ outlook in the lead-up to the next General Election.

It found that nearly one in four (22 per cent) of SMEs were unable to identify the political party that best serves their needs.

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One in three (33 per cent) SMEs said the Labour Party best serves their needs, compared to just one in four (26 per cent) choosing the Conservative Party.

When it comes to the issues keeping them awake at night, economic growth and job creation were cited by 71 per cent of SMEs, followed by tax policies and incentives at 68 per cent and access to affordable financing and loans at 46 per cent.

In terms of specific measures or reforms that the next government could make in 2024, tax incentives is the most popular policy (65 per cent), followed by access to low interest loans or grants for business expansion and job creation (57 per cent).

“Since the last General Election, small businesses have faced myriad challenges, from sky-high inflation to spiralling interest rates and supply chain shortages,” said Theo Chatha, chief financial officer at Bibby Financial Services.

“Despite the odds, they’ve survived through sheer grit and determination. But, unsurprisingly, confidence in central government to manage the economy effectively is low. This research indicates that SMEs feel abandoned by politicians, in general.

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“What they desperately want from whichever party wins the next General Election are policies and action that reflect that government’s genuine belief in the value that SMEs deliver to the UK economy overall.  That means, greater economic stability and certainty, a more favourable fiscal environment and much better access to sources of finance, so they can properly plan for growth.

“All SMEs really need is a supportive framework.  The rest they can do for themselves.”

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