Small and medium-sized businesses across the UK have warned that government initiatives intended to help them survive and grow are failing to meet the challenges they face, according to new research from independent funder Bibby Financial Services.
The firm’s latest SME Confidence Tracker, based on a survey of 1,000 small businesses in the third quarter of 2025, found that more than half (52%) believe measures such as the Fair Payment Code, the Late Payments Review and the British Business Bank’s Bank Referral Scheme fall short of providing adequate protection or support.
Despite a degree of optimism about their own trading prospects, higher costs and economic uncertainty continue to weigh heavily on business sentiment. Six in 10 respondents (62%) cited inflation and rising costs as their main concerns, with many pointing to recent increases in National Insurance and the national minimum wage as constraints on their ability to invest in growth and jobs.
Jonathan Andrew, chief executive of Bibby Financial Services, said: “The current economic climate is hugely challenging for SMEs that are seeing profit margins and spending power eroded, and overheads increasing.
“On top of continued supply chain pressures both domestically and internationally, these issues pose a significant risk to economic growth, but more importantly, they threaten the survival of thousands of small businesses across the country.”
CALL FOR LOW-INTEREST LOANS
Ahead of the autumn budget, the survey found that almost four in 10 SMEs (37%) want the government to introduce low-interest loans to help ease cashflow pressures, while over a third (35%) are calling for a reduction in business rates.
A smaller proportion, around 9%, would like to see the recent rise in National Insurance contributions reversed.
International trading conditions are also adding to the strain. Nearly a quarter (23%) of respondents said they want the government to establish new trade agreements to open up overseas markets, while 19% would like specific support to offset the effects of US tariffs on exports.
Andrew said: “Businesses are crying out for support and are sending a clear message that the high cost of business experienced in recent years is reaching boiling point.
“What they need are practical measures that protect them against mounting cost pressures and volatile international trading policies. This support must be forthcoming if the UK economy is to prosper any time soon.
“There’s a real opportunity in November for the Chancellor to back Britain’s small businesses with bold measures that cut red tape, roll back the burden of increasing costs and improve the environment for international trade.
“SMEs need to see these promises turned into concrete actions that restore their confidence to invest, hire and expand rather than just survive.”
