The Intermediary – December 2025 - Flipbook - Page 51
SPECIALIST FINANCE
Opinion
Access to finance
matters more than
ever for SMEs
D
espite seing out her
ambition to make
Britain “the best
place in the world
to start up, scale up
and stay,” Chancellor
Rachel Reeves’ Autumn Budget fell
short for small and medium-sized
enterprises (SMEs), which account for
more than 99% of all UK businesses.
Two-fihs had postponed
investment decisions until aer the
Budget, as found by our latest ‘SME
Confidence Tracker’, with many
hoping that the Government would
make moves to reduce inflation,
improve confidence and stimulate
investment. But the Chancellor’s near
silence on measures to support SMEs
will leave them wanting.
In fact, far from the desired
confidence boost for UK PLC, the
Office for Budget Responsibility’s
(OBR) post-Budget forecast suggests
growth in profits will remain weak in
the short-term. Compounded by poor
sentiment and a higher cost of capital,
the OBR also expects investment
intentions to remain subdued.
Against this backdrop, ensuring
access to finance for SMEs has never
been more important. It’s only by
unlocking capital that businesses will
be able to manage everyday cashflow
and seize growth opportunities.
Cashflow concerns
While this Budget did scrap under-25
apprenticeship costs for SMEs, in the
context of the everyday pressures this
is only a small respite.
Inflation and rising operating costs
remain the most pressing challenge
for two-thirds of SMEs. Employers’
National Insurance contributions
(NICs) have increased from 13.8%
to 15% since the Spring Statement,
pushing the average cost of employing
a full-time minimum-wage worker
from £1,872 to £2,879 a month.
It’s not surprising that 42% say
rising NICs and minimum wage
costs have hit their finances hardest,
while almost 18% highlight a direct
impact on cashflow. With many SMEs
feeling financially exposed by high
costs, external financing ensures
stable cashflow is imperative to
staying afloat.
Unlock investment now
The Chancellor previously wished to
end the UK’s “chronic stop-go cycle” of
investment that she says is to blame
for its economic underperformance.
But this Budget failed to give the green
light businesses were hoping for.
When asked what support they
wanted to see from the Autumn
Budget, 37% identified low-interest
loans or grants, indicating that many
growth-ready firms are hungry for
an affordable cash injection that will
enable them to move ahead with
expansion and hiring plans.
Business owners need decisive
action and reassurance that support
is available, alongside finance
partners that help them make the
right investments, despite ongoing
uncertainty. This underscores the
importance of intermediaries and
business advisers in guiding clients to
solutions that can stabilise cashflow
and enable investment – even when
costs are rising.
Broadening awareness
The Government launched its call for
evidence on small business access to
finance earlier this year, recognising
that many SMEs still struggle to secure
the funding they need from existing
initiatives. The Bank Referral Scheme
is one such initiative, which according
to our most recent data 33% of SMEs
DEREK RYAN
is UK managing director
at Bibby Financial Services
had not heard of. Awareness needs
to be improved. In the meantime,
SMEs are anxiously waiting to see
meaningful reform or targeted
support, while the gap between their
demand for finance and the support
available to them continues to widen.
Beer signposting, faster decisionmaking and a clearer landscape of
alternative finance must be prioritised
by the Government. This determines
whether SMEs can invest, hire and
grow; for intermediaries, it reinforces
their critical role in helping clients
navigate a fragmented funding
environment.
Economic strategy
As the beating heart of the UK
economy, SMEs needed a signal of
confidence that the Government
understands their challenges and is
commied to supporting them.
While this Budget didn’t
significantly harm SMEs, it also
didn’t help them. That is a missed
opportunity for a Government that
pledged to champion small business
growth in its Plan for Change.
The Budget may not have shown
clear support for SMEs ready to invest
and grow, but there is still time to
act. By working closely with lenders,
brokers and regional partners,
policymakers can help unlock SME
growth in 2026 and beyond.
For intermediaries, the message
is clear: given the growing demand
from SMEs, there’s a real need and
a powerful opportunity to help
by signposting how and where to
access the most appropriate sources
of finance to fund both day-to-day
operations, and growth. ●
December 2025 | The Intermediary
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