- MPs’ growth priorities are out of step with the concerns of SME leaders
- 84% of SMEs say government growth announcements rarely translate into tangible support
- 25% of SMEs are focused on survival, with only 2% targeting ambitious growth
- Weak consumer demand, regulatory pressure, tax burden and policy instability are weighing heavily on business leaders
LONDON, Sept. 9, 2026 /PRNewswire/ — MPs are focusing on the wrong priorities for economic growth and are failing to address the issues most likely to help UK businesses expand, according to a new report from The Chartered Institute of Management Accountants (CIMA).
“Building the foundations of a better business environment“, a report based on polling of SME leaders, MPs and the public, reveals a striking disconnect between Westminster’s view of what is holding businesses back and the pressures felt by companies on the ground.
While MPs put energy and operational costs, regulation and compliance, international trade and training high on the agenda, SME leaders point first to weaker consumer demand, policy uncertainty, tax burden and the need for a more stable fiscal environment.
The findings raise questions about whether government growth plans are cutting through to the businesses they are intended to support. Seven in ten SMEs say the government’s growth plan is unclear, with a further 15% unaware that a plan exists.
Andrew Harding, FCMA CGMA, Chief Executive of The Chartered Institute of Management Accountants, said: “Our research shows that business leaders are most concerned about weak consumer demand, taxation and policy instability, while Westminster appears to be focusing elsewhere.
“If ministers want to unlock growth, they need to start with the immediate conditions that give businesses the confidence to invest – stronger demand, a clearer plan and a stable tax and policy environment. Many SMEs want to invest in people, training and technology, but that will only happen when they can see a credible path beyond survival and stability.
“It is striking that MPs place greater emphasis on operational costs, trade and skills than on consumer demand and the tax environment. Those issues matter, but they are not where many SME leaders say the most urgent barriers lie.”
The research draws on polling of 2,079 UK adults, 512 SME owners and directors, and 100 MPs conducted in July 2026. It took place before Andy Burnham became Prime Minister.
Key findings:
Disconnect between MPs and SMEs
- Perception of government support diverge: 53% of MPs think the government supports SMEs well to compete internationally, compared with only 18% of SMEs.
- Different views on growth barriers: 64% of MPs rank energy or operational costs among the top three barriers to SME growth, compared with 35% of SMEs.
- Policymaker-business disconnect concerns SMEs: 33% of SMEs rank a disconnect between policymakers and the realities of running a business among their top three barriers to resilience, compared with 16% of MPs.
What is top of mind for SMEs
- SMEs not focused on growth: 25% of SMEs say their ambition over the next 12 months is survival, while 45% are focused on stability; only 2% are targeting ambitious growth.
- Government growth plan unclear: 70% of SMEs find the Government’s growth plan unclear, while a further 15% are unaware that a plan exists.
- Tax as a growth barrier: 62% of SMEs cite a stable tax and fiscal environment as a top priority for growth, and 56% cite reduced employment-related taxes and costs.
- Weak consumer demand: 64% of SMEs identify weak consumer demand and low domestic market confidence as a challenge to growth and productivity.
- Government support not translating: 84% of SMEs agree that government growth announcements rarely translate into tangible support.
- Policy uncertainty: 71% of SMEs identify frequent changes in government policy as a challenge to growth and productivity.
MPs’ views
- Tax competitiveness: Only 32% of MPs believe the Government is performing well on tax competitiveness.
- Regulation and compliance burden: 75% of MPs agree the regulatory burden on SMEs is disproportionate relative to large businesses.
About CIMA
The Chartered Institute of Management Accountants® (CIMA®) is the world’s leading and largest professional body of management accountants. Its members work at the heart of business — in industry, commerce, the public sector, and not-for-profit organisations.
View original content to download multimedia:https://www.prnewswire.co.uk/news-releases/mps-are-misreading-what-businesses-need-to-grow-new-cima-research-finds-302873163.html
