Labour's First Budget in 14 Years: where will SME growth come from?

There are many takeaways from the recent Budget announcement, however, the big question remains, where is the growth going to come from? The OBR's forecast reflects a stagnant economy, anaemic at best.

As a lender to mid-sized businesses that are looking to growth, acquire and expand, there are some areas that are welcome. I think for most business owners a sense of stability, albeit at a cost, will provide an ability to finally forward plan.

We knew a CGT increase was coming and in the grand scheme of things, the increase 'walked the line' of incentivising to remain an owner or sell. There will be a natural increase in activity in M&A with some businesses looking to get ahead of this, but I don't foresee a huge surge in activity. Retaining entrepreneurs' relief is welcome too, but one consideration from the changes to business property relief is that we may see family-owned businesses changing hands because the incentives will no longer be in place.

More generally, certainty on corporation tax is welcome and initiatives to improve infrastructure in areas such as transport and carbon capture as well as regional funds are good things and will the economy, but they certainly won't lead to short term growth.

For all but particularly growth businesses, the NICs increases will be hugely frustrating but are of no surprise. It will ultimately lead to higher costs for end customers and some lower recruitment.

While there aren't many supporters of non-doms among the general public, I think in the medium term it will likely impact wealth creation. These are the unintended consequences of these policies.

Overall, the Chancellor walked the line and in many ways it felt quite Conservative with some Labour give aways to lower earners. Notwithstanding, for businesses, it could have been worse, and most are probably breathing a sigh of relief.