The Chancellor of the Exchequer, Rachel Reeves, will deliver the Spring Statement at approximately 12:30 pm GMT on Wednesday 26 March. The presentation to Parliament will be keenly watched by policymakers and financial markets. Reeves is expected to address a litany of challenges while sharing plans to boost growth, cut costs, and perhaps alter taxes.
In recent days, CI has shared multiple comments from Fintech insiders sharing their perspectives and hopes.
Today, Hannah Fitzsimons, CEO of Cashflows, notes that SMEs are the backbone of the UK economy and 2025 is shaping up to be a challenging year for this sector.
“The funding gap for SMEs is widening, and we’re seeing alarming statistics: 40% of SMEs have been forced to pause operations due to a lack of finance, while over a third face the risk of closure. With traditional lenders tightening their purse strings and economic uncertainty persisting, business owners must explore alternative funding solutions to secure their future,” says Fitzsimons. “We didn’t see much relief for the UK’s companies, big or small, in the last budget, and there hasn’t been any indication that it will come in the next. The UK government has limited options to manage current challenges other than cutting expenditure, and this means that the relief that the country’s small businesses need may not be coming. One of the key things that businesses need is funding: companies need it to start in the first place and to keep going through difficult times.”
Fitzsimons says that inadequate funding for SMEs threatens the survival of businesses, stifling innovation and undermining job creation.
“As SMEs brace for financial pressures throughout this year, it’s imperative that they have the right support and funding tools to navigate these turbulent times. At Cashflows, we remain committed to empowering businesses with smarter, more accessible financial solutions—because when SMEs thrive, so does the wider economy.”
Paul Holland, Managing Director for UK/ANZ Fleet at Corpay, lambasts the UK government stating that 2024 was expected to be the year for small business yet they have experienced little meaningful support.
“Economic conditions remain sluggish, and with global uncertainties mounting, businesses face mounting financial strain. Inflation continues to push costs higher, and consumer confidence remains fragile. Any additional price increases, such as potential trade tariffs between the UK and major partners, will only intensify these challenges, making it harder for small businesses to remain competitive.”
Holland says that one area in which SMEs can see long-term savings is the transition to EVs, but rising costs are making this difficult. At the same time, tariffs may make prices higher, and without government incentives, many SMEs will not invest in learning more cost-efficient transport options.
“Fuel price volatility is another concern. If prices continue to rise, operating costs for small businesses will increase, forcing many to pass on higher expenses to customers. At a time when consumer spending is already tightening, this could lead to reduced demand and further economic stagnation,” says Holland. “SMBs need a forecast that recognises these pressures and provides tangible support. Access to finance is critical, yet borrowing remains difficult and expensive. If the government delivers another minimalist forecast with no meaningful provisions for small businesses, it will leave them exposed to rising costs and financial uncertainty. The right policy interventions could make a significant difference—but without them, many SMBs will continue to struggle with cash flow constraints, slowing investment, and weakening economic resilience.”
These statements tend to provide a grab bag of policy initiatives that please some and upset others. An initiative to cut bureaucratic red tape for firms should garner broad support, but we will know more about it this Wednesday.