Survey finds widespread Budget anxiety among UK SMEs
A survey of 500 UK SME owners found that 45% are anxious or dreading the Autumn Budget, while only 22% feel optimistic. Many have delayed personal financial decisions due to uncertainty, and 65% worry a tax rise could force their business to close within a year. The most common responses to potential tax increases would be raising prices, pausing growth, or freezing hiring.
The survey, conducted by money.co.uk, polled 500 UK SME owners before the Autumn Budget scheduled for 28 October. It found 22% felt optimistic, while 45% reported anxiety or dread. Uncertainty led 77% to postpone a personal money decision, with 28% doing so repeatedly. Sixty-five percent feared a tax increase could shut their business within a year.
If taxes rose, owners said they would most often increase customer prices (57%), delay expansion (39%), or stop hiring (29%). Energy and utilities were the leading cost pressure (54%). For borrowing, 40% planned loans mainly for growth, while 32% would borrow for survival. Smaller firms with 2–9 staff reported less Budget-related stress than other SMEs.
The anxiety reported by SME owners could ripple beyond individual firms. If tax concerns lead to higher prices, customers may face greater cost-of-living pressure. Paused expansion or hiring freezes may reduce job opportunities and slow local economic activity. Owners themselves may delay major personal choices, affecting households and communities. Because smaller firms often form the backbone of local employment and services, their confidence may shape wider economic sentiment. These effects are uncertain and depend on the actual Budget measures and how businesses respond.