According to iwoca’s most recent survey, the SME Expert Index, lowered taxes is the measure favoured by finance brokers to increase small-to-medium-sized enterprise (SME) growth in 2025.
The data showed that 38% of finance brokers would choose lowered taxes as a means to ensure SMEs could continue to invest in their business. This percentage doubled the voters for the second most popular option, for business rates to be reformed, at 19%.
Tax cuts would ensure cash flow remained stable and bolstered in light of rising costs. Concern for business costs on the increase was also expressed in the data, with 53% of finance brokers expressing this as their top concern, compared to 42% last quarter.
Despite rising optimism in the face of potential recession, 51% still remain wary and reported concern over this possibility.
The report also highlighted ongoing concerns for inflation. 67% of brokers believe inflation will remain high, specifically above the Bank of England’s (BoE) goal. The BoE’s target is to have inflation at 2% by the end of the year, however 32% of iwoca’s finance brokers predict this to figure to top 2.6%.
Yet, a glimmer of hope remains as economic optimism was reported to be at 46% for the outlook of SMEs in 2025. Business owners looking for SME business loans may still remain confident in their organisation’s chances of growth for the rest of the year.
At AJL Finance, we provide loans for businesses to bolster growth in spite of rising costs and toughening borrowing conditions. Reach out to our team today to learn more.
