Government policies seen as growth blocker by UK SMEs

The majority of SMEs believe government policies are holding them back from growth, according to new research by Reward Funding.

Nick Smith, group managing director for Reward, comments: “Our latest research shows a sobering reality for SMEs, with 69% of the businesses we surveyed stating that current government pressures are directly stifling their growth potential. That’s not a short-term hiccup, it’s a systemic concern and a stark warning for policymakers. Not only are firms feeling unable to grow, more than half (53%) say it’s becoming even more difficult to manage cash flow. Over 30% report they’ll freeze salaries and struggle to access working capital in the next 12 months. And, while a fifth expect pressure to adopt new technologies like AI to stay competitive, 26% have already paused recruitment and others are concerned about shrinking government support. It’s clear that policy decisions are having unintended consequences on SME sustainability and if we want these firms to thrive, not just survive, more support must be offered, and fast.”