Business Recovery

Financial future of SMEs ‘paralysed’, warns ACCA

The professional body’s survey revealed 77.8% of accountants’ small business clients are not expecting to return to pre-Covid levels of production and turnover for at least a year

The financial future of small businesses in the UK is currently “paralysed” due to economic uncertainty, according to a survey from ACCA UK (the Association of Chartered Certified Accountants) and The Corporate Finance Network (CFN).

The professional body’s poll of accountants, representing 10,839 SME clients, found businesses are unable to plan ahead for life after the pandemic.

Some 77.8% of accountants’ small business clients are not expecting to return to pre-Covid levels of production and turnover for at least a year.

Claire Bennison, head of ACCA UK, said: “We see a clear theme emerging from our accountants and their small business clients.

“A lack of clarity in government messaging and the slow pace at which some support schemes are currently rolling out are leaving them in a state of paralysis.”

She added: “The unintended consequence of this uncertainty is to leave them lacking confidence in their ability to secure the financing necessary to get back up to speed as quickly as possible.”

Kirsty McGregor, the founder of The Corporate Finance Network, said: “Current recovery schemes are moving much too slowly for small businesses and there is widespread confusion in various sectors about what the government will do next.”

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