Will the latest Autumn budget support growth?
There are many takeaways from today's Budget announcement, but for us as a lender to mid-sized businesses, the key question is whether it will support growth and encourage borrowing.
Mike Hackett, Chief Commercial Officer, ThinCats, shares his thoughts:
"Judging by the policies announced, it will be a challenge for many, more so for smaller businesses, who are less resilient and are already addressing higher taxes and employee costs. This is alongside the proposals to strengthen employee rights.
"Salary sacrifice changes will add further costs to business, while undermining pension savings – at a time when we want pension schemes to be investing in UK assets and growth businesses.
"Changes to CGT rules on Employee Ownership Trusts (EOTs) will undoubtedly dampen what has become a popular route for owner and family managed businesses exploring a sale, albeit we may see an acceleration in deals before the new rules take effect in April.
"There are some positives – notably the freezing of fuel duty, rate relief for small businesses and strengthening the Enterprise Management Incentive, but these pale in comparison.
This is not going to stop businesses from growing, acquiring and investing, especially mid-sized businesses who will be planning years in advance, but for certain sectors and for companies at different points of the cycle, it will delay plans and reduce borrower appetite.Mike Hackett, Chief Commercial Officer, ThinCats
What businesses we surveyed had to say before the budget:
Findings from our recent SME Survey of over 2,000 UK businesses showed that confidence in government support for business growth had fallen from 49% to just 39% over the past year, with smaller businesses feeling the pressure most acutely.
The survey revealed that additional costs from National Insurance and wage increases (36%) rank among the top growth challenges. Interestingly, improving access to finance for small businesses topped the list of what SMEs wanted from the Chancellor (22%).
Despite the headwinds, three-quarters of SMEs remain confident about their own growth prospects for 2026 – particularly mid-sized businesses. This resilience underscores what we see every day: when capital flows, business growth follows.