Small and medium-sized enterprises (SMEs) account for approximately 52% of the UK private sector’s total annual turnover, equating to around £2.8 trillion in 2024. They also contribute to 60% of private sector employment, totaling 16.6 million jobs.
And yet, rather than implementing fiscal measures to stimulate growth and support this invaluable part of Britain’s economy, Chancellor Rachel Reeves has increased taxes for UK SMEs, primarily through a £25 billion hike in employer National Insurance Contributions (NICs), effective from April 2025, with the rate rising by 1.2% to 15% and the threshold lowered from £9,100 to £5,000.
Additionally, capital gains tax rates for businesses rose to 18% for basic rate taxpayers and 24% for higher-rate taxpayers in 2024.
As this year’s Autumn Statement hoves into view, many business bosses are seized by a pending sense of doom, bracing themselves for what next is about to be done to them.
But it doesn’t have to be like this.
This week’s Talk Through Walls podcast looks at how businesses can, and arguably should, engage with government.
Have a butcher’s. What do you think? Are Gary Sambrook and Simon Evans, of the Walk Through Walls political agency, correct or not? Comments welcome on here or on YouTube
