Chancellor Rachel Reeves delivered her 2025 spring statement today, outlining £14 billion in cuts to restore the UK’s fiscal headroom and committing £2.2 billion in defence investment.
While the measures are aimed at tackling Britain’s debt and boosting economic resilience, business leaders have voiced concern that the statement did little to support growth, especially among the UK’s SMEs and entrepreneurial community.
Theo Chatha, CFO at Bibby Financial Services, described the statement as “a huge disappointment” for small and medium-sized enterprises, saying: “We know 87% of SME business leaders are eager to invest, and nearly half were deferring major investment decisions until after today’s statement. Will SMEs feel more confident after today’s announcements? Likely not,” he said.
Chatha warned of a continued “wait and see” approach, with businesses delaying spending on machinery, tech and recruitment — risking further economic stagnation. He added that rising business rates and National Insurance contributions, combined with the lack of SME-specific support, marked this as “a missed opportunity.”
Julian Mulhare, Managing Director, EMEA at Searce, welcomed the government’s commitment to digital transformation within the public sector but warned that simply investing in tech won’t solve deep-rooted inefficiencies. Mulhare, commented: “Tech alone won’t solve the problem. Too many organisations still plan in five-year cycles that can’t keep up with innovation, or dive in without clear goals. Real transformation starts with process first, technology second — focusing on scalable, interoperable solutions that support how people actually work.”
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