Question to the HM Treasury:

To ask His Majesty's Government what assessment they have made of the impact of rising input costs, labour costs and taxes on small and medium-sized enterprises in the UK.

This question was answered on 9th December 2025
The Government continues to monitor the business environment in the UK, including SMEs, using official data and engaging with firms and business groups to inform policy decisions.

The Government set out its overall approach for supporting SMEs in the Small Business Strategy published in July 2025 and built on this with targeted reforms to support small businesses at the Budget in November 2025.

Through our changes to Employer National Insurance Contributions, the threshold at which business start paying Employer NICs has doubled to £10,500.

We are providing support for small businesses in a number of other areas. We are introducing the toughest late payment laws in the G7. We are changing the rules to fully fund SME apprenticeships training costs for eligible people under the age of 25, providing the skills that both workers and businesses need. Through the new Business Growth Service, small businesses will be able to access support with skills training, recruitment, or accessing Start Up Loans and Export Finance.