Ahead of next week’s Autumn Budget, Paul Holland, managing director for UK/ANZ fleet at Corpay, including UK brand, Allstar, argues that tax incentives, not rises, could unlock business growth.

Paul Holland, MD for UK/ANZ fleet at Corpay

Small- and medium-sized enterprises (SMEs) are the backbone of the UK economy. They play a vital role for our economic growth and employment, and in 2023 made up 99.9% of all businesses in the UK and account for over half of all jobs.

Clearly, we must be supporting them to evolve and grow, however, we’re expecting all businesses to be impacted on 30 October.

This is because the Labour manifesto committed to publishing a roadmap for business taxation within six months of the election, and the Chancellor has confirmed this will come during the Autumn Statement.

The headlines are dominated by how to raise funds to fill the £22bn ‘budget black hole’.

However, with the Government already ruling out increases to income tax, employee National Insurance and VAT, the Chancellor is likely look to other areas to generate revenue: employer National Insurance, various duties, including fuel, and potentially some sector-specific proposals.

This means business cashflow will be critical. As a country, we must help ensure businesses of all sizes have access to flexible financial products and solutions that provide ready capital, enabling control of their operations.

But the Government must also take action. Increased financial pressure to businesses could be too much to bear for some without cutting staff, and these are the companies that need targeted help from the Government. For example, tax incentives or greater access to finance could be critical areas that could unlock growth and push our economy forward.

We strongly advise the Government to be thinking in this same frame of mind.