Goldman Sachs warns UK policy uncertainty is creating a 'confidence overhang' for small businesses

"Policy uncertainty in Westminster is weighing heavily on Britain's small business sector, according to one of the City's most influential bankers. Kunal Shah, co-head of Goldman Sachs International, warned that a lack of clarity over taxation and employment laws is creating an "overhang" that is discouraging entrepreneurs from investing and hiring. Speaking to The Times ahead of a House of Commons reception marking 15 years of Goldman's 10,000 Small Businesses programme, Shah said founders were increasingly nervous about the government's shifting regulatory agenda."

""The Budget last month was a focal point for everyone to see again how tough the fiscal maths is now. It introduces challenges for any entrepreneurs and the business environment here." Although small businesses remain upbeat about their own performance, Shah suggested that Labour's manifesto commitments - particularly around expanded employment rights - had left many founders uneasy about future costs."

Policy uncertainty in Westminster is weighing heavily on Britain's small business sector. Lack of clarity over taxation and employment laws is creating an "overhang" that discourages entrepreneurs from investing and hiring. Founders are increasingly nervous about a shifting regulatory agenda and the tax burden in the UK. The recent Budget highlighted the severity of fiscal constraints and introduced challenges for entrepreneurs and the business environment. Labour's manifesto commitments on employment rights, including a reduced unfair dismissal qualifying period, have left many founders uneasy about future costs. Although small businesses remain upbeat about their own performance, broader economic pressures continue to erode SME confidence.

Read at Business Matters