UK business owners call for introduction of government loan scheme, surpassing support for energy price package

While there has been much discussion surrounding the need for support to directly address energy bills, a measure announced by Liz Truss earlier this month, it may be surprising to learn that energy bill support is not top of the wish list.

While a sizeable number will welcome the Government’s energy bill package (23%), business owners are in fact most keen to see the introduction of a government loan scheme, with one in four (24%) business owners citing this as the top measure they’re keen for the Government to introduce. The need for broad financial support indicates that the problems UK firms are set to face this winter go beyond just funding energy bills.

With tax cuts for businesses on the cards, the research highlights which cuts business owners would be most in favour of. A reform of business rates is supported by one in five (21%) business owners, however VAT cuts, fuel duty cuts and national insurance cuts are proving less popular.

Measures UK business owners would most strongly support the Government introducing:

Government loan scheme                                                      24%

Energy cost support                                                                23%

Government grant scheme                                                     22%

Reform of business rates                                                        21%

Import/export duty cuts                                                           20%

Corporation tax cut                                                                 15%

National insurance cut                                                            14%

Fuel duty cut                                                                           14%

VAT cut                                                                                   11%

Ami Jack, Partner at Evelyn Partners comments: “UK business owners are undoubtedly concerned about the coming 12 months, with inflation, the cost of living crisis and a potential recession all providing a challenging backdrop for businesses to operate in.

“While much has been made of business owners’ need for support to keep energy bills low this winter, our research shows UK firms are seeking broader financial support from the Government, indicating that the challenges businesses are facing go beyond rising energy prices. Liz Truss has already made several big tax pledges, including cancelling the increase in corporation tax rates; but even if these changes are confirmed on Friday, reducing the tax burden may not provide all of the relief businesses are hoping for. For now, we must wait and see what the Chancellor will deliver at the dispatch box on Friday, and the extent to which the UK Government can fulfil UK business owners’ wish list.

“While tax cuts and pay-outs will no doubt go some way to alleviate business owners’ concerns as we head into winter, it’s important that businesses look to all forms of support as they navigate this period. This includes maximising reliefs and incentives to which they are entitled.  Advice from experts that understand you and your business will prove invaluable in the coming months, and can enable business owners’ to fully assess all options, equipping them to negotiate these challenging conditions.”

*Research commissioned by Evelyn Partners, conducted through an online survey by Opinium between 5th to 14th September 2022 of 501 business owners of UK companies with a turnover of £5m upwards.