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55% Of SMEs Plan To Expand In The New Tax Year


As SMEs across the UK navigate the end of the tax year and brace for an ‘awful April’ of rising bills, driven by fiscal changes such as minimum wage increases and national insurance contributions, a recent survey by Purbeck Insurance Services offers a more optimistic outlook. The survey of small business decision makers from across the UK found that a third of SMEs are already making a good profit and more than half (55%) have plans to expand their business this year. Age and postcode matter, however, and younger business owners in the West Midlands are currently painting the brightest picture of business success.


Location, Location, Location

From 6th April the growing financial burden placed on SMEs will be impacting business owners across the nation. Purbeck’s research, however, reveals that some areas of the UK look set to be more resilient than others. The most profitable place to run a business is the West Midlands where over half (52%) are making a good profit compared to the UK average of 33%.


In contrast, just 18% of the firms surveyed in the South East are making a good profit. In fact, businesses in the South East, and Yorkshire and Humber, appear to be in more perilous positions financially, with more business decision-makers stating they were making a loss or close to insolvency.


Location matters when it comes to growing a business too. According to Purbeck’s survey, regionally, firms in the West Midlands and Greater London are most likely to have plans for expansion.


Age Is Not Just A Number

While a third of businesses across the UK are making a good profit, this figure rises to 43% in businesses operated by 25-34 year olds. Meanwhile as 55% of UK businesses plan to expand in 2025, expansion is most likely in businesses run by this age group where two thirds (66%) of firms are seeking to grow their businesses.


Boosting Business With Artificial Intelligence

With added financial burdens on SMEs in the coming year many will be looking for ways to boost productivity. So, it is interesting to see that as the Government continues to usher in its AI Action Plan, offering small businesses the chance of government investment[ii], 65% of SMEs plan to invest in new technology, AI or generative AI in the next year. Only 18% of firms said they have no plans to invest in new technology. As AI continues to disrupt business across the country, it is the larger SMEs, perhaps with the ability to make greater economies of scale, which are turning to new technologies. Indeed, the bigger the business the bigger the likelihood they will spend on the latest technology, 84% of firms with 100-249 employees plan to invest in new technology.


Comments Todd Davison, MD of Purbeck Personal Guarantee Insurance: “It’s reassuring to see that business confidence remains buoyant despite fiscal headwinds. With an appetite for investment many SMEs will be seeking finance to invest for growth."


"Proportionate, managed risk is the cornerstone of business success and is an incredibly good sign for the UK economy as we head into the new tax year.”

When securing a new personal guarantee backed loan, it is always advisable to secure personal guarantee insurance, meaning the business owners’ and directors’ personal finances won’t be at risk in the unfortunate situation of a business failure.

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Apr 8, 2025
3 min read

As SMEs across the UK navigate the end of the tax year and brace for an ‘awful April’ of rising bills, driven by fiscal changes such as minimum wage increases and national insurance contributions, a recent survey by Purbeck Insurance Services offers a more optimistic outlook. The survey of small business decision makers from across the UK found that a third of SMEs are already making a good profit and more than half (55%) have plans to expand their business this year. Age and postcode matter, however, and younger business owners in the West Midlands are currently painting the brightest picture of business success.


Location, Location, Location

From 6th April the growing financial burden placed on SMEs will be impacting business owners across the nation. Purbeck’s research, however, reveals that some areas of the UK look set to be more resilient than others. The most profitable place to run a business is the West Midlands where over half (52%) are making a good profit compared to the UK average of 33%.


In contrast, just 18% of the firms surveyed in the South East are making a good profit. In fact, businesses in the South East, and Yorkshire and Humber, appear to be in more perilous positions financially, with more business decision-makers stating they were making a loss or close to insolvency.


Location matters when it comes to growing a business too. According to Purbeck’s survey, regionally, firms in the West Midlands and Greater London are most likely to have plans for expansion.


Age Is Not Just A Number

While a third of businesses across the UK are making a good profit, this figure rises to 43% in businesses operated by 25-34 year olds. Meanwhile as 55% of UK businesses plan to expand in 2025, expansion is most likely in businesses run by this age group where two thirds (66%) of firms are seeking to grow their businesses.


Boosting Business With Artificial Intelligence

With added financial burdens on SMEs in the coming year many will be looking for ways to boost productivity. So, it is interesting to see that as the Government continues to usher in its AI Action Plan, offering small businesses the chance of government investment[ii], 65% of SMEs plan to invest in new technology, AI or generative AI in the next year. Only 18% of firms said they have no plans to invest in new technology. As AI continues to disrupt business across the country, it is the larger SMEs, perhaps with the ability to make greater economies of scale, which are turning to new technologies. Indeed, the bigger the business the bigger the likelihood they will spend on the latest technology, 84% of firms with 100-249 employees plan to invest in new technology.


Comments Todd Davison, MD of Purbeck Personal Guarantee Insurance: “It’s reassuring to see that business confidence remains buoyant despite fiscal headwinds. With an appetite for investment many SMEs will be seeking finance to invest for growth."


"Proportionate, managed risk is the cornerstone of business success and is an incredibly good sign for the UK economy as we head into the new tax year.”

When securing a new personal guarantee backed loan, it is always advisable to secure personal guarantee insurance, meaning the business owners’ and directors’ personal finances won’t be at risk in the unfortunate situation of a business failure.

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New quarterly data from V12 Retail Finance shows that UK consumers continued to turn to point-of-sale finance for high-value purchases in the third quarter of 2026.

Barcare Supreme Is UK's Distributor For The Nordik DriPod Glass Dryer

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