As the UK prepares for the upcoming Autumn Budget, Manx Financial Group CEO Douglas Grant has written to Chancellor Rachel Reeves with a clear and urgent message: the Government must place small and medium-sized enterprises (SMEs) at the heart of its economic strategy. His open letter, published ahead of the November Autumn Statement, highlights the mounting challenges facing SMEs—and the opportunities that could be unlocked with the right policy support.
In the letter, Grant makes a compelling case for renewed focus on SME growth, investment, and resilience. He warns that despite optimism about expansion, many small businesses face an uphill battle due to tight credit markets, high borrowing costs, and policy uncertainty. Recent research, he notes, shows that nearly a third of SMEs have had to pause operations because of funding shortages, while one in ten have been unable to access external finance at all. Yet, expectations for growth have actually risen—from 25% last year to 38% this year—with SMEs indicating that with proper financial support, they could expand by as much as 13% in the next 12 months.
For Grant and the Manx Financial Group, this represents both a risk and a moment of potential transformation. “Supporting SME growth is critical to the nation’s economic recovery,” he writes. But with the Bank of England reporting the fastest pace of job losses in four years, and borrowing costs at their highest since 1998, the path forward demands decisive action.
Five priorities for SME resilience
In his letter, Grant outlines five practical policy priorities designed to bolster confidence and unlock growth among UK SMEs—priorities deeply aligned with the Manx Financial Group’s SME growth mission.
1. Diversify markets and manage currency risks
Grant calls for expanded government-backed trade missions and export finance to help SMEs reach new markets, particularly in Southeast Asia, Africa, and Latin America. He emphasises the need for Treasury and banking partners to support forward contracts, multi-currency banking, and hedging tools that can help businesses stabilise margins against volatile exchange rates.
2. Strengthen supply chains and digital scalability
As global tensions disrupt trade, SMEs have the opportunity to become agile alternative suppliers. Investment in AI-enabled logistics, real-time tracking, and near-shoring could help stabilise the UK’s supply networks. Digital exports, supported by strong cybersecurity and cloud-based infrastructure, could drive sustainable SME growth in the UK-India corridor and beyond.
3. Unlock finance and capital investment
With borrowing costs still high, Grant urges reforms to government-backed loan schemes and expansion of alternative lending models. He also advocates for an extension of full expensing to include green technologies, AI, and digital infrastructure—measures that would empower SMEs to invest in productivity-boosting innovation.
4. Modernise taxation and pension frameworks
Grant points to business rates reform as key to enabling decarbonisation and regeneration. Mobilising pension capital into domestic innovation and infrastructure could also generate stronger returns while supporting UK enterprise. Enhanced R&D credits and a Green Innovation Tax Credit modelled on the US would further encourage investment in high-growth sectors such as biotech and clean tech.
5. Launch a national digital skills accelerator
With skills shortages weighing on productivity, Grant recommends a UK-wide digital and technical skills programme focused on AI, green technology, and engineering. Employer-led and aligned with industrial strategy, such an initiative could create a workforce ready to power the next wave of SME expansion.
A pivotal moment for the UK economy
Grant warns that speculation over new taxes and fiscal tightening—despite the Chancellor’s pledge not to raise income tax, VAT, or National Insurance—has already begun to dampen business confidence. For many SMEs, he says, the next few months could define whether they scale or stagnate. The Autumn Statement therefore represents a crucial opportunity to reset the nation’s approach to SME support, unlocking finance, encouraging investment, and fostering innovation.
A trusted voice for SMEs
As Group CEO of Manx Financial Group (LSE:MFX), Douglas Grant speaks from the vantage point of a company deeply engaged in SME finance. Through subsidiaries such as Conister Bank, Blue Star, The Business Lending Exchange, and Payment Assist, the Group has long championed access to funding for small and medium-sized businesses across the Isle of Man and the UK.
Founded in 1935, Manx Financial Group is a diversified banking and financial services organisation headquartered in Douglas, Isle of Man. It operates under dual banking licences in the Isle of Man and the UK, giving it the ability to provide flexible funding solutions across both jurisdictions. Its businesses offer a comprehensive suite of financial services, from lending and leasing to wealth management, insurance, and foreign exchange.
Conister Bank—one of the Group’s core subsidiaries—focuses heavily on providing asset finance and credit facilities to SMEs, while Edgewater Associates stands as the Isle of Man’s largest independent financial advice firm. Other subsidiaries, including Manx Ventures, Ninkasi, and Manx Collections, each contribute to the Group’s mission of supporting individuals, businesses, and communities in building secure financial futures.
Manx Financial Group’s latest results demonstrate both stability and ambition: a 2024 profit before tax of £9.9 million, total balance sheet value of £497.8 million, and £91.1 million in cash. These figures underscore the Group’s ability to deliver sustainable growth while supporting its clients’ evolving needs.
Turning fiscal uncertainty into opportunity
In his closing remarks, Grant’s letter captures the spirit of the Manx Financial Group’s SME growth philosophy: partnership, resilience, and innovation. “The Autumn Budget presents a pivotal moment to reset the SMEs’ trajectory,” he writes, calling on the Chancellor to “transform fiscal uncertainty from a barrier into a fulcrum for renewed prosperity.”
As the UK enters a new fiscal cycle, Grant’s message is clear: empowering SMEs is not just good economics—it is the foundation for a more resilient and dynamic Britain.
