Jessica O'ConnorNearly four in five small and medium-sized enterprises are concerned about how the forthcoming Autumn Budget could affect their business savings, despite many reporting progress over the past year, research from Uswitch revealed.
Almost half of SMEs said their business savings have grown in 2025, and more than half expected them to rise further over the next 12 months.
However, confidence is being undermined by rising operational costs, tax uncertainty and persistent late payments.
According to the findings, 61% of SME owners cited increasing expenses such as energy, rent and materials as the biggest barrier to saving.
Concerns about the tax burden followed at 39%, while 30% pointed to delayed payments from customers.
These pressures are being felt particularly acutely as speculation mounts over potential VAT threshold changes in the Budget, with predictions ranging from an increase to £100,000 to a sharp reduction to £30,000.
Uswitch said this makes it vital for small firms to review their finances and strengthen their savings strategies.
The survey suggested that many SMEs are now working towards keeping four to six months of operating costs in reserve.
Even so, 17% reported a fall in savings this year, demonstrating a growing divide between firms managing to build resilience and those unable to keep pace with rising costs.
In the event of a financial shortfall, a third of SME owners said they would rely on business savings first.
Nearly one in four said they would dip into personal funds, and 16% would reduce staff or operational costs.
Despite the challenges, four in five believed they could withstand short-term shocks without needing external finance.
Andy Elder, Uswitch business savings expert, said: “It’s encouraging that so many small firms have grown their savings in recent years.
“But with rising costs and ongoing economic uncertainty, that progress remains fragile. Businesses need clarity and practical support to turn short-term gains into lasting financial resilience.”
He said: “Small businesses are caught between the need to save for the future and the reality of rising costs and delayed payments.
“Timely policy measures on payment terms and targeted operating-cost support could provide the relief they urgently need.”
