Hope Again? What small businesses need from Government

The phrase being repeated throughout this year's Labour Party Conference was simple yet powerful: "Hope Again," writes Daren Moore FCCA, The TaxAssist Group CEO.

As a guest of Intuit, I attended the conference for the second consecutive year. While The TaxAssist Group remains firmly politically agnostic, we are committed to ensuring that the voices of the small business owners we support are heard wherever important policy discussions are taking place.

TaxAssist Accountants was one of only five accountancy-related businesses invited by Intuit, reflecting our position as one of the UK's leading providers of accountancy services to the small business sector. Over three days, we participated in a series of meetings and events with advisers, MPs and ministers, culminating in a discussion with Lord Leong CBE, the recently appointed Minister for Small Business and Enterprise.

A challenging climate for small businesses

A key focus of my discussions was the current state of confidence among small businesses across the UK.

To inform these conversations, we conducted a pulse survey among a number of TaxAssist Accountants franchisees, gathering first-hand insight into the concerns and challenges being experienced by their clients. The findings will be familiar to many advisers working with SMEs.

Business owners continue to face mounting pressures, including rising employment costs, increasing regulatory burdens, an uncertain tax environment and ongoing inflationary challenges. Many are also grappling with the pace of technological change, while questioning whether there are sufficient incentives to justify the risks associated with entrepreneurship.

Perhaps most concerning was the overall sentiment. Franchisees reported that confidence levels among many small business owners remain exceptionally low, with uncertainty continuing to influence investment and growth decisions.

These concerns were consistently raised throughout the conference and formed the basis of many of my conversations with policymakers.

A different atmosphere

What immediately struck me this year was the noticeably different mood compared with the previous conference.

There was a sense of optimism and anticipation among delegates, with many believing that a change in political direction could create new opportunities and fresh thinking. Several people I spoke to referred to what they described as the "Burnham effect", citing a growing confidence that alternative approaches to economic challenges may gain greater prominence in future policy discussions.

Whether that optimism proves justified remains to be seen, but the atmosphere was undoubtedly more positive and energetic than it was twelve months ago.

Understanding the reality of running a small business

One of the recurring themes from my conversations was that while there is often broad agreement about the challenges facing SMEs, there remains a significant gap between understanding those issues intellectually and experiencing them first-hand.

Too few policymakers have direct experience of running or managing a small business. As a result, there can sometimes seem to be a disconnect between the policies being proposed and the realities that business owners face every day.

The notable exception during my visit was Lord Leong. With his business background, he demonstrated a genuine appreciation of the pressures facing entrepreneurs and small business owners. Importantly, he recognised the significant contribution that SMEs make to the UK economy and the challenges many are currently navigating.

Will political change deliver results?

The obvious question is whether a change in political direction will translate into meaningful improvements for small businesses.

As anyone who has spoken to politicians will know, direct questions do not always receive direct answers. However, I left the conference feeling more positive than I did last year.

The true test will come when policy intentions are translated into action. Future Budgets and economic announcements will provide important indications of the Government's priorities and its commitment to supporting the UK's entrepreneurial community.

Small businesses have demonstrated remarkable resilience through periods of economic uncertainty, rising costs and regulatory change. However, resilience alone is not enough. Business owners need to see that their challenges are being recognised and that practical support is being considered if confidence is to recover.

Making the small business voice heard

At The TaxAssist Group, we remain committed to representing the interests of our franchise network, their clients and the wider small business community.

The conference has created opportunities to continue those conversations directly with government representatives, including Lord Leong and senior business advisers. We intend to use those channels to make the case for policies that support growth, encourage entrepreneurship and help restore confidence among SMEs.

To strengthen that advocacy, we will also be launching a new TaxAssist Accountants Confidence Survey and Index next year. Drawing on insights from franchisees across our nationwide network, the initiative will provide valuable data on business sentiment and help ensure that the experiences of small business owners are reflected in future discussions with policymakers.

As the UK's largest network of accountants dedicated to serving small businesses, we have both an opportunity and a responsibility to ensure their voices are heard.

The conference message may have been "Hope Again". Whether that sentiment resonates with the small business community in the months ahead will depend on what happens next.

For the UK's entrepreneurs and owner-managed businesses, hope is important. But meaningful action will be what truly restores confidence.