Employers more confident about recruitment – report

Nearly two in five UK businesses are eager to invest, hire and kickstart growth as soon as economic conditions allow.

However, a survey of 1,000 UK SMEs by Flagstone & Opinium has also found that SMEs would like to see some significant financial challenges alleviated before they can begin to make these positive changes.

Asked what they want to see from the Chancellor in October’s Budget, 29 per cent want to reduce or freeze Employers’ NICs.

Reflecting on these challenges, Katie Horne, banks relationship manager at Flagstone, said: “Leaders of SMEs are brimming with workable ideas to solve the problems they face. Labour’s Business Day is an opportunity for MPs to lean in and take action before October’s Budget.”

Nearly a third (32 per cent) of SMEs facing financial pressures say these issues have caused them to reduce hiring plans or cut headcount, while 31 per cent have changed or delayed their growth plans and 30 per cent have postponed strategic decisions.

Asked what they would be able to do if financial challenges weren’t holding them back: 38 per cent would hire more staff; 36 per cent would invest in equipment, premises and technology.

Increasing wages or improving employee benefits are important to 33 per cent of SMEs, and 29 per cent would prioritise winning new clients and contracts and investing more in staff training and skills development.

Horne added: “Currently, three in five working adults work for UK SMEs. Hiring new staff, upskilling your team, investing in kit, winning business and expanding into new markets – these are all ambitions that don’t just make SMEs successful on their own, but also contribute hugely to social and economic prosperity in their local communities and the success of UK PLC as a whole. When SMEs are buoyant, the UK thrives.”