Nearly half of small and medium-sized businesses (SMEs) are struggling to secure financial support, with over two-thirds believing business taxes are too high. According to a recent survey by Sumer Group, four in ten SME owners are concerned their businesses may close within the next year, and many cite the current 25% corporation tax rate as a key challenge.
The burden of tax, coupled with worries about changes to employment rights under Labour’s Make Work Pay Plan, has left many businesses on edge.
Regional disparities highlight the uneven impact. Almost three-quarters of Northern Irish SMEs reported being close to shutting down in the past six months, followed by 68% in the northeast. In contrast, only 28% of businesses in Yorkshire and Humber and 30% in the southeast and East Midlands shared the same concerns.
Despite these challenges, there is optimism in regions facing the highest closure risks. A notable 78% of SMEs in Northern Ireland and the northeast, and 66% in Wales, expect their revenues to grow in the coming year. However, seven out of twelve regions anticipate increasing tax burdens.
While there is concern about financial inequality between regions, especially favouring the south, 89% of respondents believe businesses can still thrive outside London.
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