What Do SMEs Want to See From the Spring Budget?

Today, the Chancellor, Rishi Sunak, will unveil his Spring Budget. The announcement comes as businesses across the country prepare for a gradual easing of lockdown restrictions over the coming months, and many will be looking to the Chancellor for additional support. 

Last year, as the government grappled with impact of COVID-19, we saw the introduction of a range of measures designed to support retail and hospitality businesses. Among them were the Eat Out to Help Out scheme, bounce back loans, and a temporary cut in VAT to 5%. 

The furlough scheme, which is currently supporting over 4.5 million workers across the UK, is expected to be extended through to September. In addition, the Chancellor is set to extend business rates relief and VAT cuts - two measures that have been warmly welcomed by small business. 

Ahead of today’s Spring Budget, we surveyed over 15000 retail and hospitality businesses to find out what they most want to see from the Chancellor’s statement.

Businesses want support grants and loans

More than four-in-ten (43%) retail and hospitality businesses said they most wanted to see the Chancellor prioritise coronavirus support grants and loans for SMEs. The bounce-back loans, and other coronavirus support packages, have served as a lifeline for tens of thousands of businesses that have been forced to close for much of the last year. Our survey found that despite the publication of the government's reopening timetable, businesses are still in need of cash injections to get through the coming months. 

Grants and loans are likely being prioritised by businesses due to the substantial costs involved in reopening. A further factor - one that will be especially acute for hospitality businesses - is the prospect of reopening under a severely reduced capacity.  

Our survey also found that almost a quarter of business owners want to see the 5% VAT cut extended into the spring as the hospitality sector reopens following the current lockdown. 

Furlough also remains a key concern for many businesses. 18% of respondents cited the extension of the furlough scheme as their top priority ahead of the Spring Budget. Less popular was the prospect of relaunching last summer's Eat Out to Help Out scheme, with just 5% of respondents putting scheme at the top of their wishlist. 

On Thursday, February 25th, we asked 15000 retail and hospitality businesses what they most wanted to see from the Chancellor's Spring Budget.