Bibby SME Confidence Tracker: 54% delay investment before October 2026 Budget

More than half of UK small and medium-sized businesses surveyed by Bibby Financial Services are delaying major investment decisions until after the Autumn Budget, highlighting the impact of tax uncertainty on business spending and working-capital planning.

The latest SME Confidence Tracker from Bibby Financial Services (BFS) found that 54% of respondents were postponing significant investment decisions ahead of Chancellor John Healey’s Budget on 28 October.

Only one in five businesses surveyed believed the forthcoming Budget would benefit them, despite Prime Minister Andy Burnham’s commitment to a more pro-business economic agenda.

Reducing the cost of operating emerged as the clearest priority.

Some 46% of respondents wanted corporation tax reduced, while 43% called for a commitment against further increases. A freeze on capital gains tax was supported by 41%, and 39% wanted the reversal of previous increases in employer National Insurance contributions.

Another 36% favoured extending business rates relief beyond the retail, hospitality and leisure sectors.

The findings suggest that businesses are approaching the Budget with greater emphasis on protecting existing cash resources than committing capital to expansion.

For companies operating with extended payment terms, significant inventories or substantial payroll commitments, uncertainty over future tax liabilities can directly influence liquidity reserves and borrowing decisions.

Postponed capital expenditure can also affect suppliers, manufacturers and service providers that depend on investment by other businesses to generate orders and receivables.

Derek Ryan, chief executive for North West Europe at BFS, said the Government needed to reduce operating costs and provide greater certainty if it wanted businesses to increase investment.

He argued that lower tax burdens and broader business rates relief would free working capital and help companies resume spending on equipment, employment and new products.

The findings are particularly relevant to providers of invoice finance and asset-based lending, whose customers may be reassessing the balance between available funding, operating costs and future growth.

However, delaying an investment decision does not necessarily indicate a deterioration in credit quality or an inability to secure financing.

The immediate question is whether the Budget provides sufficient certainty to release postponed spending, or whether SMEs continue to prioritise liquidity preservation over expansion.