According to new research, two fifths of small- and medium-sized businesses (SMEs) claim big concern over rising tax amongst already rising costs.
The new Labour government set out its budget plans for 2025 in Autumn of 2024, highlighting taxes to increase by £40 billion. This January, SMEs are facing concerns over the impact of these rises on business, with 49% said to be feeling not optimistic about the economic outlook of 2025 for the country.
The survey recently conducted by iwoca is an annual outlook on SMEs. Some of the key findings were that rising running costs were a top concern for 42% of businesses with the threat of rising taxes second top concern at 40%.
In April 2025, the government proposes to increase national living wage by 6.7%, with wages for 18-20 years olds to rise by 16.3%, adding to the rising running costs for SMEs. Alongside this, employer National Insurance tax is set to also raise in April from 1.2% to a 15% contribution.
Given the economic outlook of 2025 for SMEs, concerns have also been raised over government involvement in bridging these financial pressures. However, the survey by iwoca states that 41% of participant SMEs have felt the government has not delivered expectations of positive economic outcomes.
When small- and medium-sized businesses are in need of the appropriate cash flow to meet all their tax payments, they can often find SME business loans that are able to meet either their short- or long-term requirements.
