Significant investment challenges await UK’s small to medium-sized enterprises (SMEs) in 2023 after failing to attain the planned investment target of £710,000 amid market volatility.
UK SMEs invested an average of £565,000 in 2022, falling short by £145,000 of its planned investment mark, revealed research commissioned by Together, a specialist lender in the UK.
The cost of fuel, workforce shortage, global supply chain disruptions and high taxes were highlighted as likely challenges for UK businesses next year.
The research revealed that almost a third of 300 UK SMEs have postponed expanding their workforce this year, two-thirds (67%) have deferred plans to improve business energy ratings, and 17% have stalled plans to improve heating.
Chris Baguley, corporate managing director at Together, stressed the need for the governments to devise a long-term plan to support UK businesses next year, which is “still missing”.
Baguley commented: “Thorough and direct intervention from the government to financially support the growth ambitions for UK SMEs is currently lacklustre. With the CBI’s economists already forecasting the UK’s recession will last until the end of next year and fears of ‘stagflation’ mounting – the picture for 2023 is far from positive.”
Together commissioned the research in October involving 300 UK SMEs with 6-250 employees.
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