MPs are focusing on the wrong priorities for economic growth and are failing to address the issues most likely to help UK businesses expand, according to a new report from The Chartered Institute of Management Accountants (CIMA).
“Building the foundations of a better business environment”, a report based on polling of SME leaders, MPs and the public, reveals a striking disconnect between Westminster’s view of what is holding businesses back and the pressures felt by companies on the ground.
While MPs put energy and operational costs, regulation and compliance, international trade and training high on the agenda, SME leaders point first to weaker consumer demand, policy uncertainty, tax burden and the need for a more stable fiscal environment.
The findings raise questions about whether government growth plans are cutting through to the businesses they are intended to support. Seven in ten SMEs say the government’s growth plan is unclear, with a further 15% unaware that a plan exists.
Andrew Harding, FCMA CGMA, Chief Executive of The Chartered Institute of Management Accountants, said: “Our research shows that business leaders are most concerned about weak consumer demand, taxation and policy instability, while Westminster appears to be focusing elsewhere.
“If ministers want to unlock growth, they need to start with the immediate conditions that give businesses the confidence to invest – stronger demand, a clearer plan and a stable tax and policy environment. Many SMEs want to invest in people, training and technology, but that will only happen when they can see a credible path beyond survival and stability.
“It is striking that MPs place greater emphasis on operational costs, trade and skills than on consumer demand and the tax environment. Those issues matter, but they are not where many SME leaders say the most urgent barriers lie.”
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