Duncan & Toplis, along with 19 other leading business advisory firms, are calling on the new government to offer meaningful support to small businesses.
Duncan & Toplis is joining the Association of Practising Accountants (APA) in calling for the policies and regulations businesses need to unlock growth.
We believe there is a real opportunity for the government to reengage a vital part of the UK economy that is being held back by uncertainty, outgoings and labour shortages.
A survey of owner-managed businesses found that 83% said the support from the previous government was poor, but few (30%) expect any greater support from the new administration.
Alison Smith, Director and Head of Business Services at Duncan & Toplis said:
“The new government says it wants to grow the economy but right now, most owner-managed businesses are not aspiring for growth and they’re not looking to make any real capital investments. That’s because they’re struggling with uncertain trading conditions, wage inflation, labour shortages and supply-chain costs.
“After some very difficult years, owner-managed businesses must be given the structured support they need to unlock the growth that the government says is central to its mission. They require the government to understand their needs and put in place the policy frameworks and light touch regulation that will help them thrive.”
The survey, launched by the Association of Practising Accountants (APA) and supported by Duncan & Toplis, found that only 28% of owner-managed businesses see growth as their main priority over the next 12 months while 65% are unlikely to make significant capital investment in the same period.
Other key findings from the survey of 512 owner-managed businesses include:
Commenting on the findings, APA Chair Martin Clapson said:
“Owner-managed businesses need meaningful help and support from Government. Our analysis suggests that many have given up hope of this coming. There is a real opportunity for the incoming Labour Government to reengage with this vital sector of the UK economy provided it can demonstrate it understands the needs of these businesses.
“Government needs to identify a series of short-term, stop-gap measures to reduce the immediate challenges facing SMEs including revisiting rises in corporation tax, addressing labour shortages with more flexible migrant policies, incentivising capital investment and being seen to champion the SME sector more broadly.
“There is also a need to take a more realistic view of our future trading relations with Europe recognising that labour shortages coupled with an altogether more challenging export environment poses a real threat to long-term growth.
“Above all the Government needs to recognise that uncertainty remains across many sectors of the economy and that businesses want reassurance as well as clear and unambiguous advice and support. This is about adopting a flexible approach to business policy which recognises the many challenges facing owner-managers and which prioritise the sustainable growth of this sector.”
The APA has written to the Secretary of State for Business and Trade, Jonathan Reynolds MP, to share its findings and make its case for government support.
In his letter, APA Chair, Martin Clapson urges the government to:
To find out more about the APA, visit their website and click here to learn more about our range of business services.
