Key insights included:

• Capital Gains Tax concerns: A significant 88% of respondents believe the proposed Capital Gains Tax review, which is expected to increase the levy, reflects a lack of support for entrepreneurs. Nearly three-quarters (74%) expressed concerns about the negative impact this could have on their businesses.
• Investment hesitation: 78% of leaders stated that a higher Capital Gains Tax would affect their willingness to reinvest in their companies, potentially stifling job creation and economic growth.
• Employment rights overhaul: 62% of respondents expect that potential changes to employment rights would harm their businesses, with 71% feeling the Government’s approach could disproportionately affect SMEs, failing to strike a balance between staff and employer needs.
• Business confidence: Only 29% of leaders reported feeling more optimistic about their business prospects compared to six months ago, while 40% felt less optimistic and 31% remained unchanged.
• Labour’s manifesto emphasised sustained economic growth as key to improving the UK’s prosperity, but business leaders surveyed expressed doubts about the Government’s ability to deliver on this vision, reflecting a broader uncertainty about the future.

Specific comments included:

• “The mood music over promoting growth is good but very much undermined by proposed policies.”
• “It’s anti-entrepreneurial and will mean investment will go elsewhere.”
• “We need stability to drive growth; otherwise, we can't plan effectively for the long term.”
• “We need a low tax, low inflation, low interest rates, flexible working practices and less red tape, creating an environment that encourages growth. That will ultimately increase tax revenue and employee remuneration.”
• “SMEs are often much more disadvantaged by policy changes than the Government acknowledges. If the UK government wants to drive innovation to solve problems, the needs of SMEs need to be actively considered.”

Commenting on the findings, Andy Gregory, CEO of BGF, said: “What we’re hearing of is an uncertain environment that business leaders are having to navigate while facing some very specific concerns that may – or may not – be contained in the Budget and could significantly impact growth prospects for SMEs.

“Listening to the concerns of small and medium-sized businesses is critical if the UK is to deliver on its growth ambitions with SMEs accounting for just over half (£2.4 trillion) of UK private sector turnover and 61% of employment.”