SMEs want more support now to reach their responsible business goals

A new survey has revealed that many UK SMEs are keen to reach their responsible business goals, but say they need more government support to do so.

The YouGov survey of nearly 2,000 small business owners, carried out on behalf of Informi and powered by the Association of Accounting Technicians (AAT), shows that:

• 67% of SMEs would support the provision of tax reliefs for SMEs undertaking specific activities or investing in specific areas, known as ‘social offsetting’.
• 63% would also welcome free training in specific areas, such as management skills, digital skills and finance to improve productivity.
• 72% believe tax relief for work-related training would help their small business.
• 60% said they supported tax incentives to meet net zero carbon obligations.

However, the report also found that many smaller sized firms need more immediate support. When asked which policies would help their business now, these were the answers given:

• Lower National Insurance Contributions (46%)
• Lower Corporation Tax (39%)
• Wider availability of cash grants (25%)

Adam Harper, Director of Professional Standards & Policy, AAT, commented, “These results show that many small businesses need more support to invest in longer-term goals – such as meeting net zero obligations and increased training opportunities – benefiting not only individual employees and small businesses, but also the economy as a whole.

“However, following the events of the last two years, the UK’s small businesses are still under immense pressure simply to survive. As a result, whilst many are keen to take advantage of these opportunities, they do not necessarily have the time to explore them in the current circumstances. This means that SMEs are missing out on the scope to deliver business improvements, particularly in those instances where they are restricted from accessing options that are available due to strict eligibility criteria.

“It’s clear that the government needs to take a step back and examine how support for SMEs could be improved by reforming the tax system to include incentives for these longer-term aims, as well as providing more direct relief. This would help to reduce costs to small businesses who want to implement targets in these areas, whilst freeing them up to focus on day-to-day operations.”

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