Small UK Businesses Ready to Spring Into Action — Just Awaiting the Big Talk
With the Spring Statement looming on 26 March 2025, the country’s tiny and midsize firms are all set to chart their future. Most are buzzing with plans, but a polite wait‑and‑see streak keeps them from splurging just yet.
Why the Flurry of Forecasts
- 87 % of SMEs plan to invest this year, according to Bibby Financial Services (BFS).
- Two‑thirds (66 %) expect sales to jump in the next six months.
- Yet 48 % of them are postponing big moves until after the Chancellor’s speech.
- Sixty‑three percent say a lower interest‑rate environment would give them the confidence to go ahead.
Chancellor‑centric Concerns
Derek Ryan, UK Managing Director at BFS, notes:
“UK businesses are itching to invest, but the uncertainty around the Spring Statement makes many sit on their heels. After the recent National Insurance hikes, entrepreneurs crave a stable backdrop before committing to growth plans. Without that, the government’s growth kick‑start might stumble.”
Impact of Last Season’s Budget
- Over half (52 %) of SMEs feel less inclined to invest in the short term, blaming rising employer National Insurance contributions.
- The share of firms with no investment plans has jumped to 13 % from 8 % in Q3 2024.
Financing: The Game Changer
- Businesses using external finance are less likely to abandon investment plans (6 % vs. 14 % for self‑funded firms).
- Companies without external support face tougher bad‑debt problems — the last 12 months saw a write‑off of £45 k versus £25 k for those with outside funding.
Derek adds:
“Our SME Confidence Tracker clearly separates fortunes between those with external finance and those self‑funded. It underscores the need for easier trade and finance, a key point for the Chancellor’s reform plans.”
Spring Statement: The Golden Ticket?
Following a rocky Autumn Budget, the spotlight is on how the Spring Statement could reshape the ambitions of businesses nationwide. The Chancellor has a perfect opportunity to stir the pot and ignite a wave of investment across small‑scale enterprises.
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