The owners of small businesses, who feel that the chancellor “forgot” about them in the budget, are worried that it will happen in their growth speech on Wednesday
Rachel Reeves has urged to “reduce costs” and “increase support” for small businesses such as Work continues your mission to boost economic growth.
Companies have warned that the previous measures taken by the Government mean that they have to freeze contracting and analyze the transfer of some of their operations outside the United Kingdom.
Many of the changes that are implemented after Budget They will negatively affect growth, they say, although this is one of the main objectives of work.
A recent Simply Asset Finance survey found that 46 percent of small businesses believe that the increase in National Insurance Contributions (Ni) will hinder its growth, and the same percentage will fear the impact of the potential Capital Profit Tax Increases.
Small businesses said Paper i They expect changes in the ChancellorToday’s speech is expected to present more plans to boost the economy, after telling parliamentarians earlier this week that “there are no easy routes.”
‘Small businesses are overlooked’
![](https://i0.wp.com/inews.co.uk/wp-content/uploads/2025/01/SEI_237679345.jpg?resize=1080%2C1546&ssl=1)
Christabel Flaherty, founder of Marketing Muse, based in Surrey, said she felt “overlooked” in terms of direct and shocking measures on October 30.
The 40 -year -old said: “The budget recognized the crisis of the cost of living, but did not provide objective and processable relief for small businesses that deal with these pressures.
“For example, there was not enough support to handle the increase in energy invoices or the effects of inflation, such as the increase in suppliers costs.
“Small businesses are essential for the economy, and I think we overlook ourselves in terms of direct and shocking measures.”
Mrs. Flaherty, who established her marketing consultancy after Covid in 2022, said I would like to see Mrs. Reeves Announce the policies facilitated by small businesses access funds.
Clear incentives for sustainable commercial practices, such as tax exemptions for green investments, would be a welcome step, he said.
“In addition, addressing barriers such as child care costs and improving access to affordable office spaces or subsidies for digital transformation would make a significant difference for companies such as mine.”
Growing costs, higher supplier costs and inflationary pressures Make it more difficult for companies from all over the country to operate day by day.
Inflation has fluctuated drastically in recent years and is currently 2.5 percent.
Mrs. Flaherty added: “Unlock investment opportunities, especially through accessible grants or loans, will give small businesses the breath to grow and innovate.”
‘It is more difficult to hire people’
![Express daily. Mitchell Barnes, 27, CEO of Ryse 3D in Shipston in Stour. September 5, 2023.](https://i0.wp.com/inews.co.uk/wp-content/uploads/2025/01/SEI_237694571.jpg?resize=1200%2C798&ssl=1)
Mitchell Barnes executes the Ryse 3D production printing business, which uses 26 people and has a turnover of £ 5 million a year.
He said the budget was “fiscally incompetent and worrying” and that it will make it difficult to hire people.
The 28 -year -old said that among increasing taxes on companies and labor reforms, he has to consider the freezing of hiring next year.
Among the proposed labor reforms for 2026 are eliminating the two -year qualification period for unfair dismissal, which means that employees can claim ordinary unjust dismissal from the first day of employment.
Barnes said he is concerned about the measure, since he would have to consider the potential legal rates for each hiring he does, in case an employee does not work as he should.
He agreed that the current two -year qualification period is “too long” and “incredibly unfair” for employees, but said that eliminating it would be “extremely dangerous for companies.”
Barnes said that he is now considering growing his business in another country, such as the United States, and investing more in subsidiaries there.
“I really think it would make more sense for companies to consider investing in other countries instead of the United Kingdom at this time in terms of growth in 2026.
“We have seen an increase in unemployment and yet it is difficult to cost the costs of companies and is looking to impose more companies. It doesn’t work, ”he said.
“You are reducing the ability of people to invest, you are reducing the risk-benefit equation so that entrepreneurs exist first, and you are turning an environment in which it makes less sense to invest in the United Kingdom for customers and so that existing companies also grow. ”
“You can’t always trust government intervention or assistance. ‘
![](https://i0.wp.com/inews.co.uk/wp-content/uploads/2025/01/SEI_237679423.jpg?resize=800%2C478&ssl=1)
As owner of a business, “it cannot always trust government intervention or assistance,” said Dan Silverman, co -founder of the Flexible Working Company Spacede.
But the 42 -year -old, who established his company in London at the end of 2019, would be happy if Mrs. Reeves announced a review of the commercial tariff mechanism and more transparency.
He said: “It is currently an opaque system based on random valuation dates every three years. Therefore, this leaves small businesses as space spaces that seek to take retail, leisure or office space with an important level of uncertainty when business planning.
“I would like to announce a transparent review that creates incentives for small businesses to assume business risks by assuming the commercial space; this would benefit the hacienda as our companies scale throughout the United Kingdom in terms of future tax receipts and enrich The cities and cities and cities, I still feel the effects of the Covid era “.
‘Government’s words do not match their actions’
![](https://i0.wp.com/inews.co.uk/wp-content/uploads/2025/01/SEI_237694675.jpg?resize=480%2C562&ssl=1)
Another small company that fights with the increase in Ni Bills is the Outdoor Accommodation Reserve Pitchup.com.
The founder Dan Yates says that the “appetite to hire in the United Kingdom will certainly be affected by planned reforms.”
He said that rhetoric and enthusiasm in favor of government growth by AI And technological innovation was “promising, but the reality for new companies in particular is” very different. ”
The 48 -year -old pointed out the inadequate infrastructure, the increase in regulation and policies that said “to directly quell growth.”
For example, he said that the changes proposed to labor rights would lead to hiring between small and medium -sized companies “in point.”
Yates also said that budgetary measures, such as the increase in capital gains tax, the dilution of the relief of entrepreneurs and the increase in the invoices of Ni “would collectively discourage investment and entrepreneurship.”
“It is difficult to reconcile rhetoric in favor of government growth with its actions,” he said.
“Without significant pro-rise measures to compensate for these loads, new companies will continue to fight to climb, create jobs and contribute to the economy.
“For a government that defends the United Kingdom as a global technological center, these contradictory policies are at risk of promoting talent, investment and tax revenues in other places.”
The treasure has been contacted to comment.