Responding to today's Spending Review, Tina McKenzie,
Policy Chair of the Federation of Small Businesses
(FSB), said:
“Small businesses will be wondering when they will feel the
benefits of today's Spending Review. It was not the
business-focused day they had hoped for.
“As spending allocations were announced, decisions over how that
money would support small businesses were not included. Increased
Statutory Sick Pay came without help for small businesses to
afford it; extra money for housing and defence came without a
commitment to include small firms in the supply chain; new energy
efficiency funding for households came without equivalent help
for small business premises.
“The one major bright spot for small firms today was the
significant increase in resources to the British Business Bank,
which FSB campaigned for in advance of today's statement and
which we welcome. This should see far more finance flowing to
local businesses up and down the country.
“With headline departmental funding allocated, the challenge now
passes to each and every government department to be strategic
with their spending over the next three years – using every
taxpayer pound to get the most value, stimulate the economy, and
spread jobs and growth. SMEs should get a far greater share
of public contracts, and big businesses which treat their smaller
suppliers poorly should be banned from winning them.
“Small business confidence is already languishing at levels
comparable to the energy bills crisis, while job numbers in small
businesses are falling fast, so bold, concerted action is
needed. You can't grow the economy and tax revenues without
growing small businesses.
“Small firms were not the focus today, but the second half of
2025 now becomes a crunch period for SME-focused growth reforms.
Ministers must buckle down on this over the summer and through to
the autumn, putting small businesses at the heart of the
Industrial, Trade and Small Business Strategies. This includes
addressing business rates, Employment Allowance expansion and
Statutory Sick Pay in the autumn Budget, and proper legislative
reform in the King's Speech.
“The benefits will only come if the Government takes these
challenges seriously through to the autumn.”
John Hurst, FSB Wales Chair, said:
“Small businesses in Wales continue to face relentless pressure
from rising employment costs, ongoing changes to employment
legislation, and sustained high energy bills.
“The Welsh Government must now actively back our small businesses
by using the local growth funding announced in the Spending
Review to boost our business support system, fostering a dynamic
ecosystem that encourages entrepreneurship and empowers Welsh
business owners to innovate, invest, and grow.”
