Small businesses say government is not on their side, CPS survey reveals

A substantial majority of small businesses believe that the government is not on their side, according to fresh survey findings published by the Centre for Policy Studies. The new polling exposes profound friction between Britain's small business community and Westminster policymakers as firms grapple with mounting operational expenses ahead of the upcoming national Budget.

The survey, conducted by Opinium on behalf of the Centre for Policy Studies, gathered views from senior decision-makers at small and medium-sized enterprises across the UK. The headline figures reveal that more than twice as many respondents stated the government was hostile to small businesses compared to those who felt supported. Political parties broadly struggled to secure a majority mandate of trust from enterprise leaders, though the Conservatives recorded a net rating, followed by Labour and Reform UK, according to the findings reported in the CPS briefing.

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Energy costs dominate the immediate anxieties of proprietors, cited as the single most pressing challenge, closely followed by business rates and employment costs. Additional pressures include value-added tax and persistent shortages of skilled workers. More than half of all respondents asserted that the cumulative weight of taxes, compliance mandates, and administrative hurdles has escalated since the current administration took office, while only a minuscule fraction noted any reduction.

Hostility is particularly pronounced among sole traders regarding compliance initiatives such as HMRC's Making Tax Digital scheme. A decisive margin of sole traders believes these proposed changes ought to be halted rather than implemented as scheduled. Conversely, simpler tax architectures—such as a tapered VAT system or permitting smaller firms to be taxed on turnover rather than profits—attracted significant backing among business owners looking for administrative relief.

Robert Colvile, the head of small business and entrepreneurship at the Centre for Policy Studies, emphasised that politicians must heed the warnings of employers who drive domestic job creation. James Crouch of Opinium noted that while numerous firms still project revenue growth, political leaders face an open window to address structural grievances.

The small business discontent arrives amid a broader, fiercely contested political landscape concerning fiscal strategy and taxation burdens across the United Kingdom. Debates over public spending, tax thresholds, and economic forecasting have dominated Westminster. Official projections and watchdog reports have repeatedly clashed with ministerial justifications for tax adjustments, drawing intense scrutiny from parliamentary committees and shadow ministers alike.

Simultaneously, alternative political movements have attempted to court disaffected employers and workers through aggressive tax-cutting platforms and administrative overhauls. During recent party conferences, figures such as Robert Jenrick outlined sweeping proposals for personal allowance adjustments, targeted reductions in employer national insurance contributions for domestic workers, and compensation schemes for taxpayers trapped on protracted telephone helplines. Opposing factions have questioned the deliverability and underlying costings of these various fiscal pledges, highlighting the immense pressures currently bearing down on public finances and labour markets.

As policymakers prepare for upcoming fiscal announcements, attention will inevitably center on whether the Treasury heeds calls to alleviate compliance and cost pressures. Political leaders across all parties now face mounting pressure to demonstrate concrete solutions for enterprises struggling to navigate the current economic climate.