Did you know UK tech SMEs employ approximately 700,000 people and drive more than £80 billion a year into the economy? As the Chancellor readies the November Budget, this sector isn’t just “the next big thing” - it’s already the backbone of our innovation economy.
Right now, founders and teams across the country are looking for signals that the UK still backs its innovators. Here’s what’s top of the wish-list:
1. Stability and Clarity on Tax
Constant tweaks to Corporation Tax, NI and R&D reliefs make it hard to plan. SMEs need a clear, multi-year roadmap so they can invest confidently and focus on growth.
2. A Supportive R&D Environment
Innovation moves fast, cashflow doesn’t. Faster, simpler R&D credits or upfront grants would let small firms keep building world-class products instead of slowing down to navigate paperwork.
3. Fair Play on Digital Taxes
Changes to the Digital Services Tax affect not just global platforms but UK-based firms too. SMEs want a level playing field, with clear, proportionate rules so domestic players aren’t left at a disadvantage.
4. Business Rates Fit for Modern Business
Labs, data centres, shared workspaces - today’s tech infrastructure looks very different from the past. Reforming business rates to reflect that reality would free up capital for hiring and product development.
5. Skills & Talent Pipelines
Budget support for digital apprenticeships, training subsidies and smoother access to international talent would help SMEs fill critical skill gaps and compete for top people.
6. Government as a Customer
Public-sector digital transformation is a huge opportunity. Faster payments, clearer procurement pipelines and SME-friendly contracts would give small firms a fair shot at delivering innovation for the public good.
7. Investing in Infrastructure for Growth
Affordable access to next-gen connectivity, AI compute and regional tech hubs benefits everyone - not just big corporates. Ring-fenced funding here would show the UK is serious about building a competitive tech ecosystem.
Bottom line: UK tech SMEs aren’t asking for a blank cheque. They’re asking for stability, clarity and smart investment so they can do what they do best: innovate, scale and create jobs. The November Budget is a chance to send a strong signal that Britain backs its innovators - not just in words but in action.
We welcome views and opinions about the issues raised in this blog. Should you require specific advice in relation to personal circumstances, please use the form on the contact page.
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