UK business split on biggest growth barrier: Taxes and Regulation tie for top concern.

Undoubtedly businesses are experiencing disruptions to their operations from geo-political conflicts which are out of the UK’s control. When we look closer to home our recent poll of UK business highlights a stark reality: the challenges holding businesses back are both significant and sharply felt—but not universally agreed upon. The results reveal a clear divide between two dominant concerns, while a third traditionally cited issue appears, at least for now, to have diminished in importance.

A two-way tie at the top

The poll found that the burden of High Taxes & Business Rates and Regulation & Compliance were tied as the most pressing barriers. This split underscores a broader tension within the business community: while financial pressures remain acute, administrative and regulatory demands are equally constraining.

For half of respondents, the weight of taxation and business rates continues to erode profitability and limit reinvestment. In an environment where margins are often tight, higher fixed costs can directly impact a company’s ability to hire, expand, or innovate.

Meanwhile, the other half pointed to regulation and compliance as their primary obstacle. From complex reporting requirements to evolving legal standards, businesses often lack the internal resources to manage compliance efficiently. This can divert time and capital away from core business activities, slowing growth and reducing agility.

Access to Finance

Perhaps the most surprising outcome of the poll is that Access to Finance lagged behind the top two.  Historically, access to funding has been one of the most cited challenges for some businesses, particularly for scaling businesses.

This result may suggest a shift in the current business landscape. Improved availability of lending options, alternative finance providers, and government-backed schemes could be easing previous constraints. Alternatively, it may indicate that while funding remains a key consideration, other pressures—like taxes and regulatory complexity—are now seen as more immediate and limiting.

What this means for business growth

The findings reinforce a critical point: reducing structural burdens could unlock significant growth potential within the business sector. Whether through tax reform, simplification of business rates, or streamlining regulatory requirements, targeted changes could enable businesses to:

• Scale more rapidly

• Invest with greater confidence

• Improve productivity and competitiveness

  
  

A call for balanced reform

The equal split between financial and regulatory concerns suggests that policy solutions must be balanced. Addressing only one side of the issue risks leaving half the problem unresolved.

For policymakers, industry bodies, and stakeholders, the message is clear: Businesses are feeling the burden of taxation and need operational simplicity to thrive.

Small and medium sized businesses are the backbone of the UK economy.  However availability of financing for them is not the only key consideration - it’s about creating the conditions for sustained growth and resilience.