Spring Statement – what SMEs should be thinking about

At a glance

  • The Spring Statement offered little practical support or direction for SMEs.
  • Global conflict and market volatility pose greater risks right now.
  • Despite uncertainty, SME activity remains strong, with growth plans, funding, and exit activity continuing.
     

The Spring Statement has now been delivered. In truth, there is little to highlight for the SME market. There were no major support measures. No large intervention packages. No clear direction for small and medium-sized businesses. For many business owners, it felt like activity without action. Martin Brown from Elephant’s Child explains what SME leaders should really be thinking about.

While the Statement itself was quiet, events in the Middle East may prove far more significant. We are operating in a period of high geopolitical tension and economic uncertainty. In a connected global economy, conflict rarely stays local. Its effects move quickly through supply chains, currency markets, and energy prices. This, in turn, affects business confidence.

What SME leaders should really be thinking about

For SME leaders, this is a time to think carefully about risk and resilience. What would longer supplier lead times mean for your operations? Do you rely heavily on suppliers in the United States, China, or other overseas markets? How exposed are you to foreign exchange movements? How would sustained increases in energy prices impact your cost base?

These are practical questions. They deserve clear answers.

We do not yet know exactly how current tensions will affect the domestic economy. History suggests that during volatile periods, pressures tend to show up in familiar ways. Margins tighten. Supply chains slow down. Costs rise. Funding becomes more cautious.

Businesses that prepare early are usually in a stronger position than those forced to react.

It is also important to recognise the positives. Across the UK’s 5.7 million SME owners, activity remains steady. At Elephants Child, we continue to see ambition for growth. Funding markets remain open. Management buyouts are progressing. Interest in Employee Ownership Trusts is rising.

Capital is available. Ambition remains. Opportunity still exists.

The Spring Statement may not have provided direction, but the wider economic climate demands attention. Now is a good time to revisit your risk register. 
Review your supply chain exposure. Assess your funding structure. Make sure your forecasts are strong enough to withstand disruption.

In uncertain markets, clarity and resilience matter more than ever.

If you are thinking about what current global tensions could mean for your business, now is the time to start that conversation.

St. James’s Place (SJP) work in conjunction with an extensive network of external growth advisers and SME specialists, such as Elephants Child, who have been carefully selected by SJP. The services provided by these specialists are separate and distinct from those carried out by St. James’s Place and include advice on how to grow your business and prepare your business for sale and exit.

Where the opinions of third parties are offered, these may not necessarily reflect those of St. James’sPlace.

SJP Approved 04/03/2026

Insights
African American Female Worker And Mature Manager Working On Laptop
Business owners – could new pension and IHT rules affect your succession plans?

At a glance From 6 April 2027, most unused pension funds and pension death benefits will form part of an individual’s estate for IHT purposes. Business owners considering a sale or holding commercial property and other assets through a pension may face succession-planning considerations. Reviewing pension, business exit and estate plans together can help owners […]

Read More
Investment
Beautiful woman traveler climbs uphill with a dog on a backgroun
Shielding protection cover from inflation

At a glance The longer a policy is in place, the greater the risk inflation will erode the real value of a fixed benefit. Index linking (linking the policy value to inflation) can help the payouts keep pace with rising costs. Financial advice can ensure you take out the right protection cover for you and […]

Read More
Insights
happy retired people
Pensions and IHT: the ‘double tax’ trap

At a glance From April 2027, most unused pensions and death benefits will fall into estates for IHT purposes. In some cases, inherited pensions may be subject to both inheritance tax (IHT) and income tax. If you pass your estate to a spouse or civil partner, it’s IHT free. There are financial planning opportunities such […]

Read More

View All

Pick up the phone.
Drop us an email.
Stop by for a cuppa.

Our team is here for you, whether you’ve been a client for as long as you can remember or you’re stepping through our door for the first time. We’re always happy to help, and can’t wait to hear from you.

Contact Us

Join us on social

Edinburgh

Head Office
Verdant Building, 2 Redheughs Rigg,
Edinburgh ,
EH12 9DQ

T: 0131 510 8610

Inverness

7 Connel Court, Ardconnel Street,
Inverness,
IV2 3EY

T: 01463 221 221

Inverness

Third Floor,  Suite 3A1, Metropolitan House, 31-33 High Street,
Inverness,
IV1 1HT

T: 01463 258058

London

Number 33,
St. James's Square
London,
SW1Y 4JS

T: 0131 510 8610

Email us: [email protected]

 

Let's Chat!

If you'd like a no-obligation call with one of our advisers fill in the form below and we'll be in touch. Your financial journey starts here!