The National Enterprise Network (NEN) today expressed grave concern over the Chancellor’s Spring Statement, which has failed to address the critical needs of the UK’s entrepreneurial sector, despite nearly half of UK adults considering starting a business in 2025.
As the UK approaches the financial year-end, the lack of support for Enterprise Agencies threatens to undermine the nation’s economic growth potential, particularly affecting the 800,000 start-ups launched annually across the country.
“The Chancellor has effectively abandoned start-ups and small businesses in this Spring Statement. Enterprise Agencies across the country have become vital hubs for new businesses seeking support, advice and funding assistance. However, over the past year, funding for these agencies has virtually disappeared or has been reduced, with no indication from the Chancellor about future support. As a result, Enterprise Agencies are being forced to reduce operations, severely impacting the support available for new businesses. Combined with the upcoming increase in employee National Insurance, living and minimum wage and the new employment rights bill, this all represents a significant blow to the small business community,” commented Alex Till, Chairman of National Enterprise Network.
NEN reports that the majority of their members have already been reporting job losses, some of up to 50% of their workforce as they have been sustaining critical roles and programmes since last year on their own reserves. Many are now expecting further cuts and possible closures from June.
The timing of this lack of overt support for start ups and small businesses is particularly concerning. The NEN Barometer reports a 10% year on year decline in business confidence, and notwithstanding that over 90% of Britain’s private business owners have continued to express confidence about growth in 2025 this optimism could be short-lived, with 14% of trading businesses already expecting decreased turnover by April.
Research shows that businesses receiving support through initiatives like Start Up Loans have a 69% survival rate after five years, highlighting the crucial role of Enterprise Agencies in sustaining new businesses.