A total of 53% of UK small business owners say they need to secure funding or finance in order to invest in growth plans for 2026. The need for finance is most acutely felt in London (65%) – the engine-room of the nation – followed by enterprises in the North East (62%), Yorkshire/Humberside (58%) and Wales (54%).
Significantly, the new data from Novuna Business Finance reveals that the need for finance correlates most strongly with businesses that are planning rapid expansion, rather than it being a desperate measure for businesses in trouble. The poll of a representative sample of 1,244 small business owners revealed that those enterprises forecasting significant expansion were more likely to need funding to power growth (71%), compared to 49% of those that were dealing with moderate contraction or decline.
The findings suggest UK small businesses are heading into the Christmas trading period facing a challenging financial double whammy – at a time when the percentage of small business owners predicting growth has fallen to a new five-year low (25%). The widespread need for finance to power future growth into 2026 coincides with 86% of small businesses simultaneously fearing the possibility of Autumn Budget announcements that would adversely derail their plans for growth. Nationally, Budget rises to National Insurance (59%), VAT (50%), income tax (50%) fuel duty (37%) and further taxes on diesel or petrol vehicles (37%) would all negatively impact growth plans, according to business owners.
