SME Confidence Tracker: Small business investment holds up, despite the economic backdrop
The sentiment among small business leaders reflects the uneven economic backdrop. However, data points to a mood of cautious optimism.Derek Ryan, UK Managing Director, Bibby Financial Services
Summary
Last autumn, the Government had an opportunity to lay the foundations for its economic growth agenda, but the Chancellor, Rachel Reeves’ inaugural Budget was a mixed bag.
There were some promising initiatives, such as the pledge to deliver £100 billion of capital commitments over the next five years and unlocking £1.9 billion of targeted support for small businesses by freezing the small business rates multiplier (the number used to calculate rates for small business premises).
Key findings
- 87% of SME decision makers plan to invest this year
- 66% expect their sales to increase in the next six months
- 48% are deferring capital expenditure until after the Spring Statement
- 63% say a lower interest rate environment would make them more confident to invest
- 52% are less likely to invest in their business in the short-term due to increased employer National Insurance contributions
What is the SME Confidence Tracker?
Launched in 2015, the SME Confidence Tracker is a regular study of SME owners and decision makers across the manufacturing, construction, wholesale, transport and services sectors. The study is based on a poll of 1,000 UK SMEs, and tracks views of business owners on a range of subjects including current performance, legislation, Government policy and investment plans.
