Nine in Ten Scots want Government to back UK small businesses

Reductions to business rates and National Insurance plus support with energy costs top concerns – as only 2% of small businesses looking to hire to support growth this summer

As the UK welcomes a new Prime Minister and leadership team, more than 9 in 10 Scottish adults (94%) would like to see the UK Government do more to support small businesses in the Scotland.

The new research comes at a time when tracking data from Novuna Business Finance reveals that only around one in five Scottish small businesses (22%) predict growth for the three months to September – with no summer seasonal bounce from previous quarters (22% for Q2 2026 and 23% for Q1). With small business growth forecasts at a low point for July, 38% of Scottish small business owners said they are prioritising managing fixed costs in an attempt to secure future growth. Only 5% are looking to expand into new markets and just 2% plan to hire new staff.

With small business owner sentiment cautious, Novuna Business Finance also polled 2,000 adults in the last week to get their sense on how important they thought it was for the Government to support small businesses in their community. With a new Prime Minister taking office, the poll asked members of the Scottish public what would they like to see the Government do more of to support small businesses.

• Tackling the financial pressures that directly affect Scottish small businesses were seen to be an immediate priority. More than one in four respondents (33%) called for a reduction in business rates, while 28% said they would like to see a reduction of corporation tax for small businesses – both above the UK average of 27% and 25% respectively. Further, more than one in five Scots called for a reduction in National Insurance (22%) – following the hike, which 49% of small business owners said would negatively impact their finances and growth outlook.[1]

• Energy costs were another concern. With The Government announcing on Tuesday that VAT will be scrapped from household electricity bills in October, one in three Scottish adults (33%) are calling on the Government to give small businesses a cap on energy costs, like consumers receive (well above the UK national average of 23%). Scotland’s declining high streets were also a major concern, with a further 33% of Scots wanting to see major investment from the Government in re-generating the high street (above the UK average of 23%).

• The international business landscape was also an area where the Scottish public wanted to see substantial change to benefit the small business sector. Just under one in four respondents (25%) wanted to see the Government overturn Brexit and allow the UK to re-join the EU, and 16% of those surveyed called on the Government to reduce the red tape small businesses face doing business overseas.

• Looking to the future, more than one in four survey respondents (28%) wanted more investment in apprenticeships from the Government, plus a wider rollout of apprenticeship schemes – while 25% thought more training and development programmes would help many small business owners and employees.

Jo Morris, Head of Insight at Novuna Business Finance comments: “What stands out from our recent research is that small businesses matter to everyone. While our Business Barometer tracks the confidence and growth ambitions of small business owners, our survey of the general public shows just how connected people are to the sector. People across Scotland deal with small businesses most days, a strong small business sector helps communities work well – and many consumers themselves either run or work for a small business – a sector that accounts for around 47% of total private sector employment.

“There have been a lot of positive messages of hope in recent weeks, on what is possible. We share the view that small businesses are key to UK economic growth, that high streets need investment and that reducing the tax and cost-of-living burden on small businesses will help them to invest in long-term growth, modernisation of equipment and to invest in job creation. Our Business Barometer data reveals a low-point for small business growth forecasts this month but, set against these challenges, 55% of Scottish small businesses are still committed to exploring new ways to secure future growth. With the right help from Government on tackling rising costs and the tax burden, there is hope for the future – and at Novuna Business Finance, we remain committed to supporting established businesses as they plan for the future, helping them invest in long-term opportunities that can drive growth, improve operational efficiency and strengthen cash flow.”