Spending review is opportunity to back small business

11 Jun 2025

The government must 'make every taxpayer pound count' in the Spending Review, the Federation of Small Businesses (FSB) has warned.

The FSB says Chancellor Rachel Reeves is faces tough choices with public finances tight and small business confidence in the 'doldrums'.

The business group warns of employment costs rising under Make Work Pay plans, late payments and mounting pressures from net zero.

It says the Spending Review is the moment for ministers in every government department to 'focus their firepower on small business growth and use limited funds wisely'.

The FSB wants to see a small employer rebate on Statutory Sick Pay (SSP) and an expansion of free energy audits.

It also says companies that pay their suppliers late should be banned late from winning government grants through the Industrial Strategy.

Tina McKenzie, Policy Chair of the FSB, said: 'There's no use glossing over the reality – every pound in this Spending Review has to work twice as hard. With public finances under strain and business confidence low, the smartest move the Chancellor can make is to back the UK's small businesses because that's how you get real growth in every local community.

'The small business community wants the government to show it really gets the need for growth and takes the opportunity next week to grasp it.'