What impact has the upcoming Autumn Budget had on CEO confidence?

October 30th is a date firmly imprinted in the minds of business leaders across the UK. It’s the date of Chancellor Rachel Reeves’ Autumn Budget, and many are fearing the worst. 

The Labour government has repeatedly said that it will need to make a number of difficult decisions, which could be realised in the form of tax and National Insurance hikes. SME CEOs are fully prepared for their businesses to be negatively impacted by the Budget announcement, as revealed in the results of the Vistage Q3 2024 SME CEO Confidence Index.

Read on for this report’s highlights, and a link to download the free report in full. 

Is economic uncertainty on the horizon?

The results of our latest Confidence Index reveal that overall economic confidence amongst SME CEOs has fallen. Just 29% of CEOs believe that overall economic conditions in the UK and Ireland will improve over the next 12 months. 44% expect them to remain the same, with 26% believing they will get worse. 

Despite this drop in confidence, 64% of SME CEOs expect their sales volumes to increase in the same period, while 48% believe that their profitability will improve over the coming year.

Autumn Budget fears

The majority of CEOs expect the Autumn Budget to have some impact on their business, with only 18% believing it will have no impact at all. When asked about their top areas of concern, 39% of CEOs cited sales, while 37% believed the Budget would impact hiring, and 31% stated it would have an effect on their investments. 

21% stated that inflation was a major concern, and 16% believe interest rates will be affected. 

An area that divides opinions is Labour’s ‘Right To Switch Off’ initiative, which would give workers the right to disconnect outside of their contracted working hours. While 33% of SME CEOs support this initiative, 38% of those surveyed are against the idea. 

With a new government in power and their admission that tricky decisions need to be made, SME uncertainty is understandable. While many are preparing for challenging times ahead, we still see a strong focus on growing revenue and nurturing talent. 

Talent and technology

During challenging times, it’s even more important than ever for business leaders to focus on their most valuable asset: their people. Our research reveals that many are doing just that. 

94% have already – or plan to – invest in corporate engagement and culture within their teams. 69% of CEOs have implemented leadership development programmes, while 68% have introduced skills development programmes for their workers. 47%, meanwhile, intend on increasing their workforce numbers over the coming 12 months. 

In addition to talent, technology looks set to revolutionise the way SMEs work over the next year. 85% have introduce or plan to introduce more AI to the way they work, while 81% have already implemented – or plan to implement – automation technologies to improve efficiency. With both AI and automation able to streamline operational processes and boost productivity, can your business afford to be left behind? 

Click here to download the free Q3 2024 CEO Confidence Index in full.

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