Chancellor Rachel Reeves delivered her 2025 spring assertion in the present day, outlining £14 billion in cuts to revive the UK’s fiscal headroom and committing £2.2 billion in defence funding.
Whereas the measures are aimed toward tackling Britain’s debt and boosting financial resilience, enterprise leaders have voiced concern that the assertion did little to help progress, particularly among the many UK’s SMEs and entrepreneurial group.
Theo Chatha, CFO at Bibby Monetary Companies, described the assertion as “a huge disappointment” for small and medium-sized enterprises, saying: “We know 87% of SME business leaders are eager to invest, and nearly half were deferring major investment decisions until after today’s statement. Will SMEs feel more confident after today’s announcements? Likely not,” he mentioned.
Chatha warned of a continued “wait and see” method, with companies delaying spending on equipment, tech and recruitment — risking additional financial stagnation. He added that rising enterprise charges and Nationwide Insurance coverage contributions, mixed with the shortage of SME-specific help, marked this as “a missed opportunity.”
Julian Mulhare, Managing Director, EMEA at Searce, welcomed the federal government’s dedication to digital transformation throughout the public sector however warned that merely investing in tech gained’t remedy deep-rooted inefficiencies. Mulhare, commented: “Tech alone won’t solve the problem. Too many organisations still plan in five-year cycles that can’t keep up with innovation, or dive in without clear goals. Real transformation starts with process first, technology second — focusing on scalable, interoperable solutions that support how people actually work.”
Dr Marc Warner, CEO of AI agency College, was extra direct in his evaluation, stating: “With anaemic growth since 2008, the Chancellor must realise tinkering around the margins will not arrest the UK’s economic slump. The path to reviving our economy will be paved by technology — and AI is now widely recognised as the most important of our time.”
Adebola Babatunde, Monetary Planning Director at Rathbones, mentioned the Spring Assertion didn’t encourage confidence amongst entrepreneurs.
“With over 10,000 millionaires reportedly leaving the country last year, today’s statement could have been a pivotal moment to reverse the trend and cultivate a thriving ecosystem for innovation and growth. Instead, it felt like a missed opportunity to energise the entrepreneurial community.”
Genevieve Morris, Head of Company Tax, took situation with the Chancellor’s declare that working individuals aren’t footing the invoice for elevated NICs.
“Show me an employer in the UK that is not critically reviewing their costs of employment and making decisions on headcount or recruitment as a result,” she mentioned.
“If you increase the costs on a business, they will increase prices and/or make cost reductions. That £500 average household benefit won’t go far when we’re paying £50 for a pint of milk.”
Brendan Callan, CEO of buying and selling platform Tradu, criticised the shortage of motion on share buying and selling stamp responsibility — a difficulty many within the finance sector had lobbied on.
“Stamp duty is a tax that increases costs and makes UK markets less competitive, driving retail investors toward lower-cost markets like the US. By scrapping it, the Chancellor could have boosted investor participation and strengthened UK capital markets. Without that action, the UK risks falling further behind global peers.”
Because the UK faces sluggish progress and monetary constraints, enterprise leaders stay cautious. Whereas there was broad help for tech funding and AI-led public sector reform, the absence of significant incentives for SMEs, traders and entrepreneurs leaves questions over whether or not in the present day’s assertion can be sufficient to revive confidence and ignite financial momentum.
