These are the key priorities Scots SME bosses want to see from next UK government

Bosses of smaller Scottish firms have laid out measures they would like to see enacted by the next UK government, including improved access to finance, while political uncertainty has emerged as a top concern for business-owners across the UK, according to two polls conducted in the wake of last week’s calling of a general election.

Business lender Together has found that three in ten Scottish small and medium-sized enterprise (SME) chiefs strongly believe that ensuring access to finance for such firms that are economic growth-drivers should be prioritised within the first six months of the new parliament.

Additionally, a third said they think more investment in the sector is vital, with 46 per cent demanding better facilitation of tax breaks to support enterprise, and almost half are calling for the next government to prioritise help in a timely fashion with rising costs and energy bills.

'The wealth-creating SME sector will be carefully weighing up all pledges... before deciding where to place their vote on July 4,' says business lender Together. Picture: James Veysey/Shutterstock.

The research follows UK inflation data published last week, which found that the annual rate of consumer prices inflation eased to 2.3 per cent, down from a peak of more than 11 per cent in October 2022, while recent official figures for the country’s gross domestic product (GDP) indicate that it rose by 0.6 per cent in the first quarter of 2024. Together, which says it has a loan book of £7 billion, said Sunak’s surprise announcement comes as such figures “suggest the economy could be turning a corner, although SMEs are still facing huge pressure when it comes to fuel and staffing costs”.

Ryan Etchells, chief commercial officer at Together, commented: “The wealth-creating SME sector will be carefully weighing up all pledges from Rishi Sunak and Keir Starmer before deciding where to place their vote on July 4.

“Though a fall in inflation has heralded some good news for the sector, it is clear from our research that many SME-leaders are seeking more resources and support to facilitate their growth. This situation needs to be urgently addressed in the form of concrete plans for the business community, and this will surely be a central plank of all parties’ election promises.

“Funding for SMEs is available through specialist lenders such as Together – but what is clear is that there needs to be a concerted effort, across government, policymakers, and lenders, working together to really support businesses, creating the right environment required for the economy to flourish in the long term.”

Separately, simply securing more political stability stood out as a major priority in research on UK SME bosses conducted by specialist lender Shawbrook. It found that a “staggering” 51 per cent expressed apprehension over the potential change of government, and about the same proportion cited political uncertainty as a major concern.

Neil Rudge, head of enterprise at Shawbrook, whose customer base includes established UK businesses, said: “It's important that political parties prioritise the dissemination of clear and detailed information regarding potential policies that may impact SMEs.”

However, he also sounded an optimistic note, stating: “We are encouraged by the cautious optimism already evident amongst SMEs, reflected in the recent increase in funding applications.” This, he added, coupled with positive economic indicators such as falling inflation, helps point to a “potentially interesting second half of the year for the economy”.