Mid‑Market Confidence Takes a Slide
What the Numbers Really Say
Grant Thornton’s latest Business Outlook Tracker reveals that mid‑market businesses are feeling a bit wary about the government’s support since the Spring Budget. The share of companies confident that the government is doing enough to help them tackle today’s economic headwinds fell from 79% down to 69%, a sharp 10‑point drop.
Top Priorities for Business
- Infrastructure – 37% of respondents say this is the priority they care about most.
- Skills & Training – 34% want more access to or investment in skills development.
- R&D Incentives – 31% are looking for better tax breaks to keep them researching and innovating.
- Tax Reform – only 21% see it as a key concern.
Why Tax Reform Doesn’t Top the List
Hazel Platt, Head of Tax at Grant Thornton UK, explained that businesses probably want a stable tax climate to base their long‑term plans on. The last few years have seen quite a few tax changes, and a sense of predictability has taken precedence over big tax giveaways.
R&D Tax Scheme on the Edge of a Decision
The government is still weighing whether to merge the Research and Development Expenditure Credit (RDEC) with the SME R&D relief into a single, simpler scheme. This uncertainty has neared the bottom of the R&D priority list, but many firms still expect more support as the government pushes a “Statement for Growth.”
A Silver Lining?
Despite the dip in confidence, there’s a hint of optimism: the Chancellor’s pledge to cut inflation by half this year has made the Autumn Statement feel more like a growth‑boosting blueprint than a tax‑cut manifesto. That, in turn, could bring a fresh wave of confidence back into the mid‑market sector.
