Over three quarters of SMEs say gov support is poor, APA finds

Over 75% of SMEs in the UK have said that government support is poor, according to a survey from the Association of Practising Accountants.

Alongside this, one in 11 SMEs have said their priority in the next three to six months is survival.

The report also found that more than half of the businesses surveyed said economic uncertainty had caused the most challenge to their business over the last 12 months.

Furthermore, 53% said the increases to corporation tax will impede their ability to grow to some or a great extent.

Despite this, many SMEs remain resilient with 49% who feel their business is now in better shape than it was 12 months ago.

A further 78% reported they could cope with further interest rate rises in the next 12 months.

Paul Dickson, CEO and managing partner of APA member Armstrong Watson, said: “Having navigated the challenges of Brexit and the Covid-19 pandemic, businesses are now faced with inflationary pressures, the cost of living crisis, increased tax rates, energy price volatility and economic uncertainty.

“This combination of challenges means that the pressure on many businesses is mounting. While it’s pleasing to see 23% of those who responded are prioritising business growth, others are still struggling and their priority is simply survival the challenges faced by owner-managed businesses could be relieved with more Government support and it’s certainly something we’d welcome for our clients.”

In total 532 owner-managed businesses across the UK responded to this survey giving a broad sample size.