SME Confidence Report Q3 2026

Confidence drops and cash flow is hit by tax bills

Discover how small and medium-sized businesses are responding to increasingly tough market conditions.

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9%

SMEs confident about the UK economy

41%

Confident about their own business

39%

Would struggle to pay tax bills from cash

40%

Find it tough to get funding

Revealed:

The Impact of Lower SME Confidence

SMEs are less confident in the UK economy and predict lower growth for their own businesses. The mood has changed since Q2, with SMEs saying that customers don’t have the budget to spend.

Inside the report:
How operating costs have risen in the last quarter
SME confidence in protecting their margins
Cash flow worries and how they’re changing
Areas where SMEs are still choosing to invest
The biggest staffing challenges for small businesses

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Tax is a cash flow challenge for SMEs

Smaller businesses know what to expect but many struggle to pay

Business taxation is the #1 policy issue impacting SMEs

86%

Have partial or complete visibility of VAT and Corporation Tax payments due

39%

Would struggle to pay their tax bill from cash

Download the report to see the full findings

“These quarterly reports help us – and the wider network of partners, policymakers and regulators – better understand and support this vital powerhouse of the British economy.”