Small Businesses Urged to Seek Tax Relief Amid Surge in Insolvencies During Spring Budget

Small Business Survival Guide for the Spring Budget

When Chancellor Jeremy Hunt walks out onto the stage on March 6, it’s not just the big banks and audit firms that are holding their breath; the heart of the UK’s economy—its SMEs—are on the edge of their seats, hoping the next budget will stir a tide of relief.

Survey Shouts for Support

45 % of 540 SME leaders want tax incentives and relief measures.
35 % wish for more money to pump into skills and workforce development.
24 % ask for boosts in tech adoption and digitalisation.

Half the businesses say they’re still fighting their way back to pre‑pandemic health, with a full 25 % still feeling the sting of lost momentum.

Challenges That’re Cracking Under Pressure

The main three headaches punching at these firms in 2024 are:

Inflation and rising costs – 55 % of respondents say this is top‑notch.
Cash flow woes – 34 % say it’s their next worst crisis.
Keeping employees – 28 % fear the talent war.

Why All This Matters

Every time an SME hiccups, it’s a ripple that shakes entire communities—jobs vanish, innovation stalls, and regional economies lose a few vitality breaths. Despite the Autumn Statement’s flicker of hope—full expensing and extended business rate relief— the record‑high insolvency rate at the end of 2024 (25,158, a 9% jump) shows the real strain.

MD Kevin Fitzgerald Gets Straight

“SMEs are the backbone, the lifeblood—they spark innovation and build local economies,” Jonathan says in his sharp, no‑frills tone. He flags 45 % of leaders demanding urgent tax help, and how the post‑pandemic inflation roller‑coaster can feel like a bucking bronco.

He proposes three urgent tweaks:

Elevate the VAT threshold to £100,000—slight cushion for rising costs.
Re‑tune business rate relief thresholds, so more firms can breathe.
Bring back tax‑free shopping for tourists—double‑whammy of tourism boost and business relief.

Meanwhile, Fitzgerald urges SMEs themselves to adapt—use AI for admin efficiency, boost employee retention with better productivity perks.

“With over 300,000 SMEs in our global ecosystem, we see resilience every day. It’s time for the government and the private sector to walk together; let’s not just help them survive, let’s let them thrive in the face of adversity.”