As the days tick down to the Autumn Budget, the calls to provide greater stability and stimulate growth for small businesses are growing louder. What do firms want? And, just as important, what steps can they take to best position themselves for growth?

The upcoming Budget is the first for the new government and the small businesses sector is clearly pinning its hopes on reforms that will give it the boost that it has long been hoping for. While there has been a range of proposals from different groups, including the Federation of Small Businesses and the British Chambers of Commerce, there are many common points.

What do small firms want from the Autumn Budget 2024?

A definitive reform of business rates is a common target, with a consensus around reducing the burden on small firms, including exempting many from the tax completely. Notably, such a step is being linked to a campaign pledge to help businesses on the country’s struggling high streets.

Other proposals include improving workplace wellbeing by cutting tax on workplace health services for both employers and their staff, addressing the skills gap by extending investment in local skills training and increasing spending on infrastructure, including transport networks.

Another measure that has widespread support is for the government not to inflict any tax rises on small businesses, with dividend tax hikes seen as a particular threat to sector growth, while there are also calls to make access to finance easier for firms as they look to generate sustained forward momentum after years of economic torpor.

Small firm growth and how alternative finance can help achieve it

It is clear that easing the financial burden on small businesses is integral to sector proposals for the Autumn Budget 2024 – whether it’s related to taxes, skills, materials or investment. The pressure on cash flow has rarely been greater.

The government can help the sector in the upcoming Budget, but when it comes to accessing finance, businesses can also take their own steps, including by learning more about alternative finance.

Services such as invoice finance, asset finance and peer-to-peer lending are proving a vital source of capital for small businesses in the current funding climate (with 65% more SMEs experiencing difficulty in accessing finance from high-street banks). These alternative finance facilities, which offer a more easily accessible, affordable and personalised approach to lending, are helping small businesses survive and target recovery, stability and growth.

This profile has helped cement the reputation of alternative finance in the business sector. Notably, the new Growth Guarantee Scheme will provide a wide range of finance facilities to smaller firms, including asset finance, invoice finance and asset-based lending. This is further proof that alternative lenders are increasing filling the small business funding gap.

Small firm finance options for funding new growth

While small business sector calls for support are getting more and more coverage, it remains to be seen what the Autumn Budget 2024 delivers for firms. The government has made it clear that the financial legacy that it has inherited is imposing significant limits.

Nevertheless, if the sector is to build on growing optimism, managing cash flow and having capital available for investment are critical. There is an expectation around government help but firms can also take their own steps – for example, by raising their awareness of the services of alternative lenders.

To find out more about A&T Business Associates services, contact Tony Hedger on 01903 602211 or tony.hedger@atbusinessassociates.co.uk.