As we approach the upcoming Spring Forecast the usual pre-event ritual of leaks within the press of speculative tax changes appear to have been replaced by an unfamiliar, if not, welcome silence.
For years the economy has been subject to a fiscal tug of war, with constant fine tuning and adapting of policies to meet business’s needs.
And while many of these policies have positively impacted businesses, what has been grossly underestimated is the inevitable uncertainty that large fiscal events can bring.
As an independent lender to UK SMEs, what we tend to see around these calendar dates is a stagnation in our client’s growth plans, as many await upcoming announcements before making significant investments or financial decisions.
SURPRISE TAX RISE
When deciding whether to green light a new contract to supply a supermarket with your product line, or even expand your workforce, the last thing you need is a surprise tax rise – right now, a quieter fiscal environment is exactly what businesses need in order to grow with confidence.
The Chancellor’s apparent commitment to descale the Spring Forecast – reverting it back to a technical update rather than a secondary Budget – is a wise move.
We are already seeing the benefits of what consistency can achieve. With inflation stabilising just last week to 3%, the UK economy is showing a resilience that shouldn’t be underestimated.
The greatest gift the Chancellor can give to British businesses right now is the confidence of stability.
The greatest gift the Chancellor can give to British businesses right now isn’t a new relief; it’s the confidence of stability.
We’ve seen first-hand that when the fiscal noise moves on, the SMEs we support are better positioned to move from a reactive place to a proactive one.
With inflation now holding at 3%, the focus shifts from managing rising costs to unlocking the value already sitting within a business.
With a steadier landscape, the Government can now allow business owners the headspace to explore flexible funding solutions, such as asset-based lending (ABL).
Whether it is leveraging plant and machinery or utilising invoice finance to smooth out cashflow, multi-product ABL solutions provide the agility needed to turn long-term strategies into immediate action and with a quieter Spring event, businesses can do just that.
