By Fatma Younis
Chancellor John Healey is set to deliver his first Budget on Wednesday, with small and medium-sized enterprises (SMEs) urging the government to prioritize measures that reduce costs and create a level playing field. Industry bodies have laid out four key areas where they hope to see action: public procurement, tax and regulatory burdens, late payments, and youth employment.
Better Access to Public Contracts
British Chambers of Commerce director general Shevaun Haviland welcomed Healey's pledge to use public procurement to back British capability, calling it vital for regional growth. However, she stressed that smaller firms must be able to compete on a level playing field. Haviland said the test will be whether projects such as the £6bn allocated for British shipyards are delivered quickly with clear pipelines that give businesses confidence to invest.
Relief from Rising Business Costs
SMEs have faced a squeeze from rising employer national insurance rates, packaging taxes, and high business rates. Haviland noted that policy-related operating costs for a typical SME have increased by more than 70 per cent over ten years. She urged the Budget to provide breathing space, avoid further tax rises, and cut some of these costs.
Action on Late Payments
Late payments remain a growing problem. Bibby Financial Services' latest SME Confidence Tracker found that 32 per cent of UK SMEs want robust late-payment legislation by the end of this parliament. Six in ten SMEs reported customers are taking longer to pay than a year ago, with the average SME owed more than £72,000 in unpaid invoices, rising to £143,000 for mid-sized businesses. Such cashflow restrictions can force firms to cut payment terms, risking loss of business from larger, slower-paying organisations.
Support for Youth Employment
Youth unemployment has been rising, yet SMEs often struggle to find suitable staff. Small Business Britain CEO Michelle Ovens welcomed the Chancellor's focus on creating opportunities for young people. She emphasized the need for business skills development throughout education, wider access to apprenticeships, and stronger public-private collaboration to ensure young people have the skills and confidence to thrive.
