As the UK braces for November’s Autumn Budget, Douglas Grant, Group CEO of Manx Financial Group, is urging Chancellor Rachel Reeves to prioritise the nation’s small and medium-sized enterprises (SMEs). In a detailed letter, Grant highlights a stark reality: nearly a third of SMEs have paused operations due to funding shortages, and one in ten cannot access finance despite ambitious growth plans.

Dear Chancellor Reeves,

As you prepare for your Autumn Budget Statement on 26^th November, we urge you to place the vitality of Britain’s small and medium-sized enterprises (SMEs) at the heart of your economic agenda.

Recent research paints a sobering picture: nearly a third (30%) of UK SMEs have had to pause or halt parts of their business due to funding shortages. One in ten, despite seeking funds, could not access external finance. Meanwhile, growth expectations have climbed sharply over the past year, from 25 % to 38 %, and SMEs maintain that, with adequate support, they could expand by up to 13 % in the next 12 months. It is clear: supporting SME growth is critical to the nation’s economic recovery.

Yet, macroeconomic headwinds and fiscal uncertainty threaten to undermine that optimism. According to the Bank of England’s latest Decision Maker Panel survey, between June and August 2025, UK businesses shed jobs at the fastest pace in four years. Adding to the tension, markets are jittery: borrowing costs have soared to their highest since 1998, contributing to a projected £50bn budget shortfall and fuelling speculation of new tax measures, ranging from a windfall levy on banks or gambling, to changes in inheritance, capital gains, and fuel duties. Such rumoured measures could tighten the squeeze on SMEs at a moment when stability is vital.

In light of these concerns, we propose five focused policy priorities to catalyse SME resilience and growth:

1. 1. Diversify markets and manage currency risks

Rising input costs and export pressures, exacerbated by global trade volatility, are real threats. Government-backed trade missions and export finance, especially aimed at Southeast Asia, Africa, and Latin America, can help SMEs pivot. Support for forward contracts, multi-currency banking, and hedging tools should be expanded through Treasury, the British Business Bank, and banking partners to stabilise margins.

1. 2. Strengthen supply chains and digital scalability

With geopolitical tensions disrupting trade, UK SMEs can position themselves as agile alternative suppliers. Encouragement for near-shoring, multi-sourcing, and investment in AI-enabled logistics and real-time tracking would improve supply-chain resilience. Digital services exports and cloud-enabled models, with robust cybersecurity, will unlock opportunities in the UK-India corridor and beyond.

1. 3. Unlock finance and capital investment

Persistent high borrowing costs and rigid terms hamper SME expansion. Reforming government-backed loan schemes, reducing credit costs, and enabling digital underwriting via alternative lenders would expand access to capital. Extending full expensing to include green tech, digital infrastructure, or AI, or introducing a targeted investment super-deduction, would further encourage productivity-boosting investment.

1. 4. Modernise taxation and pension frameworks

The current business rates system remains an obstacle to decarbonisation and local regeneration. Reform, such as land value taxation or targeted innovation relief, could ease these burdens. At the same time, mobilising defined-contribution pension capital into UK scale-ups, infrastructure, and innovation could both secure savers better returns and fuel growth. Enhancing R&D credits for AI, biotech, or clean tech, alongside a Green Innovation Tax Credit modelled on the US, would further strengthen incentives.

1. 5. Launch a national digital skills accelerator

Amidst cost pressures and workforce constraints, SMEs struggle to recruit and retain talent. A UK-wide digital and technical skills accelerator, with employer-driven AI, green, and engineering training, would address these gaps. Aligning such programmes with industrial strategy entities ensures that the UK’s future skills needs are met.

Looking ahead

Chancellor, speculation around tax rises and fiscal tightening, even amid your pledge not to raise income tax, VAT, or NI, has already dampened business and consumer confidence. SMEs are bracing for further uncertainty, and confidence is deteriorating. The Autumn Budget presents a pivotal moment to reset the SMEs’ trajectory, by unlocking finance, enabling market diversification, incentivising investment, and empowering skills development. In doing so, you can transform fiscal uncertainty from a barrier into a fulcrum for renewed prosperity. We stand ready to support you in ensuring that SMEs, and the communities they anchor, thrive as Britain moves forward.