SME optimism rises, but cost pressures test growth ambitions ahead of Autumn Budget

• Almost half (49%) of SMEs are positive about the year ahead, but face the same cost barriers one year on
• Two-fifths (40%) are calling for help with high energy costs in the upcoming Budget – up from 33% in 2024
• A third (34%) also want more tax incentives to unlock better innovation and investment

Nearly half (49%) of UK SME decision makers are positive about the year ahead – rising from 43% this time last year – but ongoing tax and cost burdens continue to impact growth prospects and productivity, according to new research from Simply Asset Finance.

Carried out ahead of the Autumn Budget, the research highlights that – one year on – SME optimism has strengthened. In fact, nearly one in five businesses (19%) are ‘really excited’ about their growth prospects – more than double the proportion seen in 2024 (8%).

Despite this renewed confidence, many SMEs are still facing the same barriers they faced at last years’ Budget and are calling on the Government to unlock productivity in this month’s Budget. Top of the list is help with high energy costs (40%), rising to over half (54%) for medium-sized firms. Meanwhile, a third (34%) want more tax incentives for innovation and investment, highlighting areas of policy change that could help fuel business productivity and future growth.

Calls for corporation tax cuts have almost doubled to 36% (up from 19% in 2024), while government- backed loans for small businesses remain a key priority for a quarter (26%) – as many look for ways to finance expansion.

Confidence that the Government will deliver a pro-business agenda remains muted at 36%. Crucially, 12 months on, SMEs report facing the same barriers to growth: around half (46%) cite a stagnant UK economy, two in five (39%) high inflation, and just under a third (30%) high interest rates.

With two-thirds (68%) saying the upcoming Budget will have a significant or fundamental impact on their growth plans, pressure is ramping up for the 26th November announcement.

Mike Randall, CEO, Simply Asset Finance comments: “It’s incredibly encouraging that SMEs are showing a clear appetite to invest and grow. But there is continued frustration at the lack of support with ever rising costs and the same barriers blocking their path forward.

“Energy costs remain the biggest drag on growth – and businesses are clear they need support to allow more room to invest. But with the UK facing some of the most expensive energy costs in the world, firms are operating at a disadvantage and something needs to give.

“With the Budget weeks away, the Government now has a critical window. The right decisions could unlock growth and fuel productivity across the UK; the wrong ones risk stalling momentum at a defining moment.

ENDS

Media contact

Teamspirit

simplyassetfinance@teamspirit.co.uk

About Simply Asset Finance

Founded in 2017, Simply Asset Finance was created to bring innovation, flexibility, and a customer-first approach to UK business lending. Since launch, the firm has supported over 12,000 businesses, facilitated more than 25,000 finance agreements, and reached £1.9 billion in total loan origination. With a £505 million gross loan book and £8.5 million pre-tax profit for FY2024, Simply continues to scale its SME-focused operations, combining cutting-edge technology with expert personal service. The company recently migrated its loan book to Lendscape’s cloud-native open-API platform and expanded its funding capacity through partnerships with Bank of America and the British Business Bank’s ENABLE programme.