A thriving small business sector is a catalyst for economic growth and a more prosperous, resilient, and inclusive society, according to Enterprise Nation chief executive Emma Jones. She has urged political parties to prioritise small businesses, as they “will be required to do much of the heavy lifting” needed to fulfil the pledges made in election manifestos.
It is widely acknowledged that SMEs drive growth and are likely to innovate more. They create better quality jobs and deliver a bigger boost to their local economies in real terms every day. However, HMRC has been accused of denying genuine claims for tax breaks on research and development (R&D) from small firms. Some claim the tax office is rejecting valid submissions, delaying payments, and reclaiming tax credits as it intensifies efforts to tackle fraud. HMRC has estimated that more than £1 billion was paid out due to fraud or error and is therefore taking a tougher stance on claims.Meanwhile, the UK manufacturing sector is experiencing its strongest growth spell in over two years, with June seeing sustained output and new order growth at robust rates similar to May’s recent highs, despite a slight decline.However, the picture remains mixed. Figures from law firm Shakespeare Martineau reveal that 879 UK businesses have filed for administration this year, marking a 16% increase from 2023. The most vulnerable sectors include retail, manufacturing, construction, real estate, and hospitality.While caution and rigorous attention to balance sheets are still necessary, there is at least some light amid what is turning out to be a very gloomy summer weather-wise.