Tax cuts would be the best way to stimulate SME growth in the UK, according to a survey by commercial finance broker Hilton-Baird Financial Solutions.
Out of more than 400 managing directors and business directors surveyed, 59% believed the "single most important" way to help businesses grow would be to cut taxes. 30% of these wanted a VAT reduction, 15% chose a cut in corporation tax and 14% preferred an income tax cut.
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Another 16% of respondents thought the best way to stimulate growth would be new government funding initiatives.
When asked about factors contributing to low consumer and business confidence, 67% of those asked blamed uncertainty over the future of the UK economy. Other factors listed included falling disposable income, at 46%, and negative media coverage and the ongoing eurozone crisis, at 45% and 44% respectively.
A lack of available funding was named as a factor by 43% of businesses, with only 34% saying they had secured funding in the last six months.
Evette Orams, Hilton-Baird Financial Solutions managing director, said businesses believe that "high taxes are prohibitive to… stability and growth", and this is "impacting adversely on their demand for goods and thus business growth."
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By GlobalDataShe continued: "While it is true that many businesses are finding it difficult to secure traditional finance, with the number of those using overdrafts and loans falling according to our research," Hilton-Baird urges businesses to "assess the full range of funding solutions at hand to enable them to keep their cash flowing and their businesses stable."
