SMEs hail Labour Party as the champion of business interests

UK SMEs Say Labour’s the New Business Buddy – And Here’s Why

Just before the Spring Budget, a fresh round of numbers from Bibby Financial Services (BFS) shows a surprising political shift among small‑and‑medium‑enterprises (SMEs). 37 % now see the Labour Party as the best fit for their interests, while only 22 % think the Conservatives are the “business‑friendly” choice.

What the Numbers Tell Us

Labour now tops the list: 37 % of SMEs say Labour is most aligned with their goals, up from 33 % in Autumn 2023.
Conservatives lose ground: Support dipped to 22 % from 26 % last fall.
General discontent: 20 % of respondents can’t pick a favourite party, showing a widespread sense of “politics‑no‑trust.”
Growth optimism: 61 % anticipate sales hikes in the coming months, higher than the 54 % who expected Q1 2023 growth.
Tax relief demand: 61 % want more tax incentives (lower corporation tax, business rates, etc.).

Why Small Businesses are Buzzing About Labour

With the economy finally out of the recession slump, SME owners are feeling the buzz. Jonathan Andrew, CEO of BFS, notes that starting the year with rocky times, the news that the UK is steering clear of a deep recession gives a real boost to the entrepreneurial spirit.

“There’s little doubt small businesses are more optimistic today than they were at the start of 2023,” Andrew said. “The Autumn policies like freezing business rates and reforming late payments haven’t yet won over the SME community. But they are ambitious and resourceful. With a general election on the horizon, the Government should use the Spring Budget to inspire the UK’s SME community and present a convincing vision for growth.”

In a Nutshell

As the UK gears up for the Spring Budget, SMEs are leaning leftwards, craving more tax breaks and stronger support. The upcoming government will need to deliver a clear, appealing plan if they want to convert this optimism into solid backing.