SME News Q1 2025 / News iwoca SME Insights: Cutting Taxes Is Key to UK Business Growth More than a third (38%) of finance brokers say lower taxes are needed in order to boost SME growth this year in the UK, according to iwoca’s latest SME Expert Index. The latest research report from European Fintech firm iwoca has noted that this is actually double the next choice of “reforming business rates (19%).” With almost three-quarters (70%) or the majority of finance brokers saying conditions for SMEs have “worsened since the Labour Government took office, there continues to be anxiety felt amongst small business owners.” Increased business running costs for SMEs now reportedly remain “the biggest concern for more than half of finance brokers (53%), up 11-points on the previous quarter.” Concerns over inflation remain high — with a significant “two-thirds (67%) of finance brokers believing inflation will be above the Bank of England’s 2% target by the end of the year, with 32% predicting it will top 2.6%.” However, despite continued concerns about barriers to sustainable business growth, economic optimism still appeared to have “bounced back in the last quarter of 2024, with almost half of SME finance brokers (46%) reporting feeling optimistic about SMEs’ future in 2025, compared to 36% in the previous quarter.” Following a sharp decline after the Budget, this seems to signal “a glimmer of hope for the year ahead, as pessimism has gone down.” However, worries still persist about a potential recession, as “more than half (51%) are concerned about the possibility – a slight increase on last quarter.” Colin Goldstein, Chief Commercial Officer, UK at iwoca, has commented: “SMEs are facing rising costs and tougher borrowing conditions, yet they remain vital to the UK economy. With high street banks pulling back, businesses are turning to alternative lenders like iwoca to access the funding they need. We’re making it faster and easier for SMEs to secure finance— helping them navigate uncertainty and drive growth in 2025.”
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