According to new data from Novuna Business Finance, the need for funding is most acutely felt in London (65%), followed by the North East (62%), Yorkshire/the Humber (58%) and Wales (54%).

The poll of 1,244 small business owners showed 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 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, VAT, income tax and fuel duty or further taxes on diesel or petrol vehicles would all negatively impact growth plans, according to Novuna’s research.

The data also explored the consequences of small business owners not securing funding in the months ahead — and the growth initiatives for 2026 that would be put on indefinite hold as a result.

•   Bridging & Commercial X Allica Bank — The £65bn SME credit gap
•   BoE's 'vague, fence-sitting' rate hold sparks Budget anxiety
•   Market hesitation blamed on stamp duty rumours

Plans to create jobs and increase headcount would be dropped by 33% of small businesses, while 28% said they would mothball plans to launch new products.

In addition, 25% of small businesses would scrap plans to modernise their IT capability and 24% would postpone investment in new production lines and machinery.

The Novuna Business Finance research also reveals a direct impact on supply chains, with 20% of respondents saying they would not be able to pay their suppliers on time.

Jo Morris, head of insight at Novuna Business Finance (pictured above), commented: “There is so much talk about economic growth, but at times there seems to be a lack of understanding on what is needed to create it. Our decade-long ‘Business Barometer’ study shows clearly that the growth forecasts of UK small businesses have fallen to a five-year low for the final months of 2025.

“The vast majority are extremely concerned about any Autumn Budget tax hikes that few enterprises feel they can absorb — and at the very time when they are looking for funding to support growth plans, whether this be investing in new equipment, hiring people or modernising IT capabilities.”