The Autumn Statement, the event where the UK government outlines its forthcoming budget and associated programs, is scheduled for Wednesday, October 30th. Expectations are for the Labour government to increase certain taxes as it aims to close a gap in funding. CI has received multiple comments from various Fintechs and today we have two more firms sharing their opinions.
Scott Dawson, CEO at DECTA – a payments solution provider, said that customer trust is hard to win and easily lost. He believes the upcoming Labour budget will not help.
“After several difficult years following COVID and soaring interest rates, the UK’s economy seems to be improving, and a major worry many business leaders have right now is the next budget statement going reversing the progress we’ve made. A large part of that progress is customer goodwill – companies live or die on whether their customers trust them, and in tough economic conditions those companies are going to be forced to compromise,” Dawson states. “We are always seeing how services we relied upon have become worse as interest rates rise and consumers tighten their belts as we see any number of these service costs increase. When this ‘rot economy’ reaches the payments industry, companies will need to change their business models to stay afloat. That could mean cutting back on the services that they can provide, being more conservative with their risk profile, avoiding innovative new technology and, as always, raising prices. “The end result is a world in which merchants can’t trust payments companies and consumers can’t trust the entire payments ecosystem.”
Dawson added that they have spent a long time building trust in complex tech, and a budget of austerity will harm that trust.
Hannah Fitzsimons, CEO of Cashflows, another UK-based payments firm, said that funding will be key to businesses in challenging times.
“There has been a lot of noise and speculation about what will be included in the upcoming Autumn Statement on 30th October. Some have forecasted increased corporation taxes, capital gains taxes, fuel duty, as well as employer National Insurance and many other pieces of legislation, designed to fill the £22 billion pound ‘black hole’ – the summation for the UK’s businesses is a period of ‘difficulty.’ However, where the government has a role to play, as an industry, we also have a responsibility to do more for the business population, especially the small to medium-sized enterprises (SMEs) that form the backbone of our economy,” Fitzsimons said.
She added that they know how difficult the current economic landscape is and how important it is to help SMEs continue to thrive.
“Businesses must be able to access the funding they need when they need it, but inflexible repayment plans leave many unable to invest in their own growth. That’s why access to funding that allows for repayments directly aligned with sales figures provides a level of flexibility unparalleled by traditional funding, and offers a truly frictionless experience without the constraints of fixed monthly repayments. Whatever is announced at the end of the month, we know the key role that payment solutions and business funding has to play for UK SMEs. I believe it’s a key enabler to help businesses not just survive but thrive.”
