A survey of owner-managed and SME businesses by accountants and business advisers Kreston Reeves and AAB (in partnership with the Association of Practising Accountants) has found little support or confidence in the government, with 97% rating its support as ‘poor’ or ‘very poor’.
The survey conducted by the APA, a network of 20 accountancy firms across the UK of which Kreston Reeves and AAB are members, also found:
- 91% of business owners expect labour costs to rise in the next 12 months;
- 68% are unlikely or very unlikely to make significant capital investment in the next 12 months; and
- Just 32% see growth as their main priority.
Andrew Griggs, Senior Partner and Head of International at Kreston Reeves said: “These findings demonstrate a need for stronger alignment between government policy and the needs of owner managed businesses. They are the backbone of the UK economy yet many are operating in an environment characterised by rising costs and continuing uncertainty.
“There is a real opportunity to unlock growth across the UK if businesses are provided with the practical support, incentives and certainty they need to plan for the future. The challenge for policymakers is to create the conditions that give businesses the confidence to invest, recruit and grow.”
The Kreston Reeves and AAB survey also found:
- 88% anticipate higher supply chain costs.
- 53% of respondents have less confidence in the resilience of their supply chain in the next 12 months
- But nearly half (49%) think they are in better shape than they were 12 months ago.
John Beevers, Head of Regions at AAB said: “While there is still ambition to grow, rising employment costs, margin pressures and continued economic uncertainty are understandably causing many leaders to take a more cautious approach to investment and expansion.
“What's particularly notable is the tension between the need to grow and the confidence to invest. Businesses recognise the importance of investing in people, technology and operational improvement, but many are focused first on maintaining stability and building resilience.
“At the same time, we're seeing businesses look for new ways to drive productivity, explore opportunities in new markets and use technology to improve performance. With greater certainty and the right support, owner-managed businesses can play an even greater role in driving innovation, employment and economic growth across the UK.”
The APA calls on the government to:
- Introduce greater fiscal incentives to unlock capital investment.
- Encourage closer alignment of modern apprenticeships with the needs of the workplace.
- Take a more realistic view of our future trading relations with Europe and outside Europe, recognising that labour shortages coupled with an altogether more challenging export environment pose a real threat to long term growth.
- Recognise that uncertainty remains across many sectors of the economy and that businesses want reassurance as well as clear and unambiguous advice and support.
Association of Practising Accountants represents 20 accountancy firms who collectively act for more than 14,000 businesses. This survey, completed over the summer of 2026, represents the views of 272 businesses across the UK.
