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Post-Budget Struggles Persist: Small Businesses Face Ongoing Challenges

Source: 'We are still struggling after last year's Budget' (2025-11-26)

Despite the anticipation surrounding Chancellor Rachel Reeves' latest Budget announcement, many small businesses and social enterprises continue to grapple with the fallout from last year's fiscal policies. The previous Budget's increases in national insurance contributions significantly impacted organizations like Thurrock Lifestyle Solutions, a social enterprise supporting individuals with disabilities in Essex. Owner Neil Woodbridge reported an additional £8,000 monthly cost, forcing him to limit staff pay rises and reduce service capacity. This ongoing financial strain underscores the broader economic challenges faced by small and social enterprises across the UK, which are still recovering from the adverse effects of last year's policies. Recent facts that deepen understanding of the current economic landscape include: 1. The UK’s social care sector is experiencing a staffing crisis, with many providers citing increased costs and recruitment difficulties. 2. The government has announced measures to support small businesses, including targeted grants and tax reliefs, but uptake remains uneven. 3. Inflation rates have remained high, impacting operational costs for small enterprises, especially in healthcare and social services. 4. The UK’s unemployment rate has slightly decreased, yet underemployment and wage stagnation persist in many sectors. 5. The upcoming Budget is expected to focus on balancing fiscal responsibility with targeted support for vulnerable sectors, including social care and small businesses. 6. Recent surveys indicate that over 60% of small business owners feel uncertain about future economic policies and their impact on growth. 7. The government has committed to reviewing national insurance policies, with some proposals to ease the burden on small employers. 8. Public opinion polls show increasing concern over the affordability of social care and the availability of qualified staff. 9. The UK economy is projected to grow modestly in the coming year, but regional disparities remain significant. 10. Policy analysts suggest that future budgets will need to address both fiscal sustainability and social welfare to foster long-term economic resilience. As the UK navigates these ongoing economic challenges, small businesses and social enterprises remain at the forefront of the recovery process. The government's upcoming Budget will be closely scrutinized for measures that can alleviate financial pressures, support employment, and ensure sustainable growth across vital sectors.

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