Give us a reason to vote Tory, say Britain’s SMEs

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• New polling shows one in four small businesses are unsure if they will survive the next year

• Tories lead with big firms, but are neck and neck with Labour among SMEs

• Heads of SMEs are looking for a reason to vote Conservative

The past 15 months have underscored one truth: Britain needs a stronger economy. Businesses, not government, drive growth. The UK’s 5.4 million small and medium-sized businesses (SMEs) employ 16.6 million people – one in three voters – and generate £2.8 trillion in turnover. They are not only the engine of our economy but a vital constituency.

Many SME leaders voted Labour in July 2024. Some are now flirting with Reform UK. As Conservatives gather in Manchester this week, the party has designated this day of its annual conference ‘Business Day’ – rightly shining a spotlight on our wealth creators. To mark the occasion, Conservatives For Business (CFB), a non-affiliated platform giving SMEs a stronger voice, has published new Opinium polling. It shows that putting SMEs at the heart of Conservative renewal could rebuild trust and boost growth.

Confidence is fragile

The findings are sobering. Nearly six in ten SME leaders lack confidence in the UK economy, while 57% are pessimistic about the country’s direction. Almost a quarter doubt the future of their own business. That’s one in four high street shops, cafés and hairdressers unsure if they’ll survive the next year.

Profitability is under pressure: 51% say it has worsened since the last election, 41% describe business taxes as unaffordable and 38% cite soaring energy costs as a major concern.

While Conservatives lead Labour among larger firms (26% vs. 19%), the parties are neck and neck among SMEs. Unlike big corporations, small business owners shoulder every burden themselves. Without an HR team, legal department or finance floor, every tax hike or new regulation hits them harder – and personally. SMEs need politicians who understand and act on those realities.

What SMEs want

Our polling reinforces what we hear every day: SMEs are clear about their priorities: lower energy costs (42%), reduced business taxes (41%) and less red tape (25%). Their biggest fears are rises in National Insurance, income tax and business rates.

Red tape remains a significant hurdle: 35% of SME leaders now spend more than half their time on administration rather than growth. That’s like driving with the handbrake on.

On trade, half of SMEs want Europe prioritised for new economic ties, valuing proximity and supply chains. A third looks further afield to the US, Canada, Australia and New Zealand. SMEs have broad horizons and big ambitions – imagine what they could achieve if the government simply made things just a little easier.

Net zero divides opinion: one in five see it as an opportunity, one in six as a challenge and three in ten as both. Ambition must be balanced with realism. Britain has the highest electricity prices in the developed world – a situation that’s unsustainable for small businesses.

Politics of persuasion

SMEs in Manchester have told us: ‘We voted Labour because we wanted change. We don’t want Reform. Give us a reason to vote Conservative!’

That is both a challenge and an opportunity. SMEs don’t want abstract pledges; they want clear, long-term policies that let them plan with confidence. They want their hard work to be worthwhile and for government to help, not hinder, growth. Supporting SMEs isn’t just smart politics – it’s economic common sense.

They are the next Emma Bridgewater, Riverford or Dyson. They are innovators, job creators and local champions – the pride of our high streets and the heart of our communities.

Policy in practice

Putting SMEs at the centre of Conservative renewal means turning their priorities into action: lowering energy costs and cutting business taxes; applying common-sense regulation so entrepreneurs can focus on growth rather than paperwork; and simplifying trade with Europe and beyond to boost competitiveness and access new markets.

These are not abstract ideas – they address the daily pain points that make or break small businesses. Every new law, regulation or tax change affects SMEs first and hardest.

Supporting SMEs also means recognising their social contribution. If every SME could employ one more person, the national impact would be huge. The confidence and cost crises they face are real. If Conservatives want to reclaim the mantle as the party of business, they must demonstrate a genuine understanding of the realities and the pressures small firms face and offer practical, deliverable solutions. Under Kevin Hollinrake’s chairmanship, there is a real commitment to that mission. Confidence can be rebuilt with policies that are fast, practical, flexible and fair.

The moment to act

This conference – and tonight’s joint event with the Centre for Policy Studies, CapX’s parent organisation – is more than a photo opportunity. It’s a chance for Conservatives to listen, act, and reclaim their reputation as the party that backs business.

The message from SMEs is unambiguous: give us a reason to vote Conservative. Support our businesses, protect our livelihoods, and make it easier for us to dream, create, and succeed. Do that, and the Conservatives won’t just win votes – they’ll help rebuild the British economy from the ground up.

The CFB and CPS discussion and drinks take place from 6:00-7:30pm in the Centre for Policy Studies Gallery, Exhibition Hall, Manchester Central. The panel will be chaired by Tim Dier, Research Fellow for the CPS feature speakers from the Federation of Small Businesses and The Jobs Foundation.

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