Christopher Perrin, Law Firm Partner: These Are UK Tech SMEs’ Wish-List For The Autumn Budget
UK tech SMEs employ approximately 700,000 individuals and contribute more than £80 billion annually to the economy. As the Chancellor prepares for the November Budget, this sector is recognized as a fundamental component of the innovation economy.
UK tech SMEs employ approximately 700,000 individuals and contribute more than £80 billion annually to the economy. As the Chancellor prepares for the November Budget, this sector is recognized as a fundamental component of the innovation economy.
Frequent adjustments to Corporation Tax, National Insurance, and R&D reliefs create challenges in planning. SMEs require a clear, multi-year roadmap to facilitate confident investment and growth focus.
Innovation progresses rapidly, whereas cash flow does not. Implementing faster, simpler R&D credits or providing upfront grants would enable smaller firms to continue developing world-class products without administrative delays.
Modifications to the Digital Services Tax impact both global platforms and UK-based firms. SMEs seek a level playing field with clear and proportionate rules to avoid disadvantages for domestic operators.
UK tech SMEs employ approximately 700,000 individuals and contribute more than £80 billion annually to the economy.
Business Rates Fit for Modern Business
The infrastructure of today's tech companies, including labs, data centers, and shared workspaces, differs significantly from the past. Reforming business rates to align with this reality would enable capital allocation toward hiring and product development.
Budget allocations for digital apprenticeships, training subsidies, and streamlined access to international talent are necessary to address critical skill gaps and allow SMEs to compete for top talent.
Public-sector digital transformation presents significant opportunities. Improvements in payment terms, procurement processes, and SME-friendly contracts would enable small firms to contribute to public sector innovation.
Investing in Infrastructure for Growth
Ensuring affordable access to next-generation connectivity, AI computing, and regional tech hubs benefits the entire ecosystem. Dedicated funding in these areas would demonstrate the UK's commitment to building a competitive tech environment.
UK tech SMEs are seeking stability, clarity, and strategic investment to innovate, scale, and create jobs. The November Budget is an opportunity to affirm support for innovators through actionable commitments.
Based on reporting by techround.co.uk.