The Chancellor's Mansion House speech has received a mixed response from London's business community, with many welcoming the new measures aimed at supporting smaller firms but expressing concern that the Government's current approach may hinder economic growth.
According to a recent survey, almost half of London's businesses believe that the Government's current policies will worsen economic growth, highlighting a stark warning within the small print of the Chancellor's speech.
The London Chamber of Commerce and Industry has welcomed the new measures, including a UK Export Finance guarantee scheme and an expansion of the British Business Bank's Growth Guarantee Scheme, which will provide more than £3.5 billion in SME lending per year and support up to 20,000 businesses.
However, the Chamber's chief executive, Karim Fatehi OBE, noted that the underlying mood among members is far from buoyant, with many facing significant barriers to securing finance due to rising debt levels and pandemic-era borrowing.
The Chamber has emphasized the need for the next government to provide early certainty for businesses, maintain business confidence, and avoid further increases to the cost of doing business, including tax and regulatory burdens.
The focus on SME finance will be crucial in driving growth, particularly for smaller firms that have ambitious plans to invest and export but struggle to secure finance due to rising costs and debt levels.
The Chamber has also called for meaningful business rates reform, rather than further delay, and a pragmatic new relationship with the EU that reduces barriers to trade and improves labour mobility.
The next government will face significant pressure to deliver on its promises and turn ambition into action, using the policy levers at its disposal to get London growing and driving prosperity across the country.
For SME owners, the takeaway is clear: cheaper, more available credit and export support are on the way, but the price of that support remains uncertain, and the next government must provide clarity and certainty for businesses to plan for the future.
