The Five Changes Business Owners Want To See From The Budget What UK SMEs need most from the upcoming Budget

"According to government figures, small businesses make up 99% of the UK's business population, fostering job growth and economic advancement across the country. The government's recent introduction of the Fair Payment Code, replacing the current Prompt Payment Code, is a commendable step forward in addressing one of the critical issues affecting SMEs: late payments.

50,000 businesses close a year due to late payments and holding larger companies to account for this should be made legally requisite. The Fair Payment Code offers an ambitious new reward system that incentivises the timely payment of small enterprises, but we think there is more that can be done.

Engaging with the needs and recurring issues faced by business owners, beyond the clear issues relating to cashflow caused by late payment cycles, there are a raft of other issues that have the potential to hamstring SMEs as they enter the winter period. With that in mind, here are five areas where SMEs hope change can be achieved in the upcoming Budget:

1. New research found that seven in ten UK SMEs are struggling to find new recruits with adequate skills, so crucial measures need to be taken to upskill the labour force. The government have proved cognisant of this through their recent initiation of new Foundation Apprenticeships. This could go further through implementing IT-proficiency and enterprise-education within the secondary school curriculum, greatly improving SME efficiency, improving job creation and ultimately bettering the workforce of tomorrow.
2. Additionally, while recent governmental reforms of the Bank Referral Scheme - the key means through which non-bank, alternative financing for SMEs can be found - appear promising, more clarity on these funding options are required in order to give SMEs greater access to financing. Improving the range of government-backed financing choices (the new sovereign wealth fund and reforms to the British Business Bank could play critical roles here) as well as making educational material on external financing options more widely-available to businesses, are pivotal in this regard.
3. Another key issue that could affect UK SMEs is rising business rates. Maintaining the 75% business rate relief for hospitality companies and reforming business rates (discounts for property improvements and lowered rates for growing SMEs with increased productivity potential, for example) are essential levers that can not just maintain SMEs ability to trade but also improve their growth prospects.
4. The last three years have also seen unprecedented fluctuations in energy prices, which greatly restrict SMEs capacity for growth due to increased operating expenses. We hope that the government will seize on the opportunity provided by GB Energy, not just to coordinate with small-businesses in developing renewable energy projects but also to help stabilise costs for burgeoning companies.
5. As SMEs look to make pace with larger companies and reach new customers, tools such as artificial intelligence have the opportunity to be revolutionary for many business owners. The provision of educational tools to help organisations better understand both the possibilities and risks of the technology is essential, so that it can be used as a catalyst for success rather than a hindrance to these businesses.

The government has promised to revitalise the high street, and addressing late payment cycles is a clear step in the right direction. However, there is still so much work to be done to help support the UK's nation of business owners, who will hope their needs are answered in the forthcoming budget."