Almost half of UK SMEs are optimistic about the year ahead, but cost pressures remain the biggest obstacle to growth, according to new research from Simply Asset Finance released ahead of the Autumn Budget.
The study shows SME confidence is climbing: 49% of decision makers feel positive about the next 12 months, up from 43% a year ago. Notably, 19% say they are “really excited” about their growth prospects — more than double the 8% recorded in 2024.
However, despite growing optimism, the challenges facing SMEs remain largely unchanged from last year’s Budget. Businesses continue to grapple with high energy prices, inflationary pressures and rising taxes, prompting renewed calls for government action to boost productivity.
High energy costs remain the single biggest issue for SMEs, with 40% calling on the Chancellor for targeted support — rising sharply to 54% among medium-sized firms. The UK remains one of the most expensive advanced economies for business energy costs, leaving companies warning that they are operating at a structural disadvantage.
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