Commenting, Faye Church, Senior Planning Director at Rathbones, says:

“The Spring Statement offered little immediate relief for business owners already grappling with a heavy tax burden and persistently rising costs. For many SMEs, the issue isn’t just what was announced, but what remains unresolved - not least the absence of an extension to business rates relief."

“Our research shows that tax and cost pressures have already forced more than one in five SME leaders to cut staff, with business rates, employer National Insurance and regulatory costs weighing heavily on confidence and investment."

"Against that backdrop, the renewed spike in oil and gas prices following the escalation in Iran risks adding another layer of strain at a time when margins are already thin."

“Higher oil and gas prices can feed quickly into transport, utilities and supply chains, pushing up day to day operating costs across the economy. For smaller firms with limited pricing power, these external shocks are particularly hard to absorb - especially when they come on top of an already rising business tax burden."

“In this environment, stability and targeted support matter. Without meaningful action to ease the cumulative burden on SMEs, there is a real risk that higher costs - now compounded by geopolitics and global energy shocks - could further dampen investment, hiring and growth at a time when the UK economy can least afford it.”