Key takeaways

Energy costs are the top financial pressure facing UK SMEs

Over a third of UK SMEs (37%) name energy prices as one of their biggest financial challenges, followed by economic uncertainty (30%) and the cost of labour (28%).

Political instability worries more than inflation or global conflicts

Among businesses citing economic uncertainty as their top pressure, 55% point to UK political instability and leadership transitions, ahead of inflation (51%) and global conflicts (45%).

Businesses are protecting themselves today at the cost of tomorrow

In response, 42% of businesses facing financial challenges have raised prices, 32% have cut operating costs or reduced hiring, and 31% have delayed growth and investment plans.

Almost half of SMEs say they can’t keep going this way for more than two years

Under current pressures, 43% doubt their business can continue as it is today for more than two years. One in nine (11%) has considered closing the business altogether.

Cost relief tops SMEs’ wishlist for the government

Asked what they most want to see from government, 43% chose a reduced tax burden, 30% support with energy costs, and 29% relief on employer National Insurance.

Relief would unlock growth for businesses – and the wider UK economy

If today’s pressures were resolved, 38% of businesses facing financial challenges would hire more staff, and 36% would invest in equipment or technology.