Confidence in government support is generally low, according to a recent survey from the Association of Practising Accountants’, which showed 91% of owner-managed businesses rate government support as poor or very poor, and 89% lacking confidence in the government’s growth strategy.
With the survey revealing that 64% are unlikely to make new capital investments in the next 12 months, there’s a real risk that further fiscal tinkering could dampen spending and stall recovery just as retail enters its most critical trading period.
Fleur Lewis, partner and head of mid-market at Bishop Fleming, said: “The timing of this year’s Autumn Budget, landing just days before Black Friday, risks ruining Christmas for many retailers and owner-managed businesses already struggling under the weight of rising costs.
“For a sector that depends on consumer confidence and seasonal spending, a late-November Budget announcement – with potential tax increases – injects fresh uncertainty at the worst possible time.
“The government must consider whether staging the Budget so close to the retail sector’s golden quarter was an appropriate move. SMEs and high street independents form the backbone of the UK economy – but they can’t plan, invest, or hire effectively when policy announcements collide with their busiest season.”