Energy bills help tops Budget wishlist for UK companies

Optimism is rising among business owners ahead of the budget, research has found, but they have some specific demands they hope the Chancellor’s announcement will meet.

Research from Simply Asset Finance has not only gauged the mood among business owners but also has given voice to what they believe is holding them back from growth.

Rising positivity

Amid concerns about the financial burden that the NICs hikes and business rates have placed on businesses, this research reveals that cost barriers haven;t changed for businesses in the year since the last Autumn budget.

However, despite this, almost half (49%) of SMEs are positive about the year ahead. This is a slight increase from the 43% who were optimistic when asked this time last year. In fact, nearly one in five businesses (19%) are “really excited” about their growth prospects, which is more than double the proportion seen in 2024 (8%).

However, the confidence dropped when business owners were asked whether the Government will deliver a pro-business agenda, landing at 36%.

Barriers to growth

The research revealed exactly what is impacting businesses; and the picture remains much the same as last year. Around half (46%) cite a stagnant UK economy, two in five (39%) high inflation, and just under a third (30%) point to high interest rates.

However, it is energy costs that are a universal thorn in the side of UK enterprise. Two-fifths (40%) of those interviewed called for help with high energy costs in the upcoming Budget  and this was up from 33% in 2024. This figure also rose to more than half (54%) for medium-sized firms.

Mike Randall, CEO, Simply Asset Finance said, “Energy costs remain the biggest drag on growth – and businesses are clear they need support to allow more room to invest. But with the UK facing some of the most expensive energy costs in the world, firms are operating at a disadvantage and something needs to give.”

In June, the Government launched a scheme to help businesses reduce energy bills. However, its scope was limited as it targeted just 600 small and medium-sized hospitality businesses, offering free expert advice and audits on how to cut both costs and carbon emissions.

Tax incentives

While help in energy costs topped the list, a third (34%) of the business owners interviewed said that they also want more tax incentives to unlock better innovation and investment.  This might include help with investment in infrastructure or funding for digital transformation; but also a decrease in corporation tax. The research revealed that calls for this specifically have doubled since last year from 19% to 36%.

A third of respondents also listed government-backed loans as on their wishlist.

With the Government under pressure, a lowering of taxes seems unlikely. Indeed, rumours are strengthening of a rise in the National Minimum Wage, anticipated changes under the Employment Rights Bill, which has currently stalled, and a potential increase in Capital Gains Tax.

With two-thirds (68%) of those surveyed saying the upcoming Budget will have a significant or fundamental impact on their growth plans, pressure is ramping up in businesses around the country as the days tick down to 26th November.