Columnist

Confidence the missing ingredient for economic growth

As we head towards the Autumn Budget, I keep thinking about the importance of confidence. 

Most North East founders I speak to are full of ambition, and they’ve got the ideas, the drive and the appetite to grow. 

What’s holding them back isn’t creativity or commitment; it’s confidence in the system around them.

Businesses need stability, clarity and a firm belief the Government genuinely has their backs.

And while policy has a huge role to play in that, there’s also a mindset element – a growth mindset that says, ‘I’m going to crack on regardless’. 

Small business owners need confidence to have this growth mindset, and the upcoming budget has a significant part to play in business confidence. 

So, here’s my budget wish list. It’s simple, practical and focused on rebuilding confidence.

Stability over soundbites

Stop changing the rules every five minutes. 

Business leaders need to plan, forecast and build for the long term, so they need certainty around regulations.

Whether it’s around employers’ national insurance, corporation tax or investment reliefs, constant tinkering erodes confidence. 

Simplify investment schemes

Research and development, Seed Enterprise Investment Schemes and Enterprise Investment Schemes are vital for innovation and early-stage growth, but the red tape and delays are stalling business momentum. 

Founders are spending months navigating forms and waiting on HMRC decisions instead of focusing on new products and markets. 

Simplify the process, speed up payments and make the rules simple and stable enough for people to plan around.

Reward the risk-takers

Let’s create a fairer tax balance for SME business owners, especially those who reinvest profits to grow. 

The current system too often penalises those taking real personal and financial risks. 

If you’re backing your business, creating jobs and driving the local economy, you should feel supported, not punished.

Support digital adoption

Artificial intelligence, cloud accounting and automation are the backbone of productivity and efficiency for modern businesses. 

Incentivising digital adoption could free up thousands of hours across the SME community, reduce the admin burden and give founders more time to focus on growth.

Back the regions 

We don’t need another short-term funding pot that disappears before it’s made an impact. 

What we need is long-term regional investment in skills, infrastructure and innovation. 

The North East is full of potential, but that potential needs consistency and follow-through. 

We need long-term support that builds business capacity, not just another round of reports and committees.

Recognise the human side of business

We all know running a company is stressful, and the system needs to respect that. 

Simpler processes, faster decisions and genuine support for founders can go a long way in rebuilding trust. 

The Government should consider how policy lands in real life, the late nights, the risk and the pressure of paying staff well. 

Confidence grows when people feel seen and understood.

The truth is simple: when founders feel confident, they invest. 

When they invest, people get hired, ideas grow and local economies thrive.

The UK doesn’t have a shortage of talent or ambition, but right now it does have a shortage of belief. 

A stable, supportive Autumn Budget putting small businesses first could change that.

It’s time to move from firefighting to future-building. 

Give SMEs clarity, consistency and confidence, and they will do the rest.

Jon Dudgeon is co-founder and chief executive of North Shields, Newcastle and London-based accountancy and business advisory firm Blu Sky

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