Marvin OnumonuSmall and medium sized businesses (SMEs) across the UK are cutting costs and pausing hiring ahead of the Budget, research from Rathbones found.
40% of SMEs have made or considered changes ahead of the Budget, with 32% already cutting costs or restructuring and 31% delaying hiring.
46% said they expect the Budget to be bad for business.
70% are worried about tax rises, and 62% believe the Government does not understand SME needs.
Not all changes were defensive, with 30% expanding into new markets or regions and 29% launching new products or services to strengthen their position.
70% identified rising business taxes as their main worry.
12% feared more regulation, and 14% were concerned about reduced Government support.
Income tax, capital gains tax, and VAT were the main areas business leaders expected to be targeted for increases.
62% said the Government does not understand the needs of entrepreneurs and SMEs.
Among founders and entrepreneurs, that figure rose to 82%.
Ade Babatunde, senior financial planning director at Rathbones, said: “These numbers reinforce what we hear from business owners and senior executives, who are clearly very concerned about the Budget and its implications for their businesses.
“Many are worried about a repeat of last year’s Budget, which saw increases to Employers’ National Insurance, and preparing for the worst.
“The government has spoken at length about the importance of getting Britain growing, but as yet has offered very little to help those starting and seeking to build businesses, such as tax relief, targeted support, or policies that reflect the realities of running a small business today.”
When asked what they most wanted from the Budget, 44% of SME leaders called for no new taxes, 43% hoped for cuts to business taxes, and 37% wanted business rates reduced.
