In last week’s Budget, the Chancellor spoke on AI, saying that “nowhere is the necessary role for the state clearer” and that the government must “seize the opportunities and guard against the risks”.
According to a recent survey, just over four in ten businesses (43%) and around three in ten charities (28%) reported having experienced any kind of cyber security breach or attack in the last 12 months. This equates to approximately 612,000 UK businesses and 57,000 UK charities.
Overall prevalence of cyber breaches or attacks has remained in line with last year, after a significant decline in prevalence among businesses the previous year (from 50% in 2023/2024 to 43% in 2024/2025). Following the pattern observed in previous years, medium (65%) and large (69%) businesses were more likely to have experienced a cyber breach or attack in the last 12 months compared to micro (42%) and small (46%) businesses.
Mark Williams, Chief Operating Officer at Sharp UK comments, “Technology is now business-critical for SMEs. With this increasing reliance on digital technology comes a surge in cyber-attacks that could severely impact SME’s both financially and reputationally.” He continues:
“Cyber security can no longer be treated as an optional extra. This is why Sharp supports the need for an SME cyber resilience offset scheme so businesses can make the investment decisions that will give them greater confidence and security. SMEs must be supported in taking reasonable steps to protect themselves, not just be left to navigate an increasingly complex threat landscape alone. Building a safer digital future for businesses of every size will be critical to job creation and economic growth across the country.”
Chancellor John Healey announced several changes announced that will impact SMEs across the UK, mainly the minimum and Living Wage increase of 3.9% and the first-year allowance increase from 40% to 50% for those organisations that can’t use full expenses. The OBR has also raised growth to 1.2% this year, cutting it to 1.0% in 2027.
Mark continues, “For SMEs, rising employment costs like the minimum and living wage increases make productivity an increasingly important part of the margin conversation. But the debates in boardrooms shouldn’t be about how much people cost, but instead about whether they are giving those people the right technology to make the best use of their time.
“If highly-skilled employees are still re-entering information to maintain spreadsheets, working around disconnected legacy systems or manually creating reports that could be automated, there is a cost attached to this inefficiency, which can become a much larger drain on businesses as other costs rise.
“Technology like AI won’t remove every cost pressure, nor should businesses invest in technologies such as that simply for the sake of it. But the Autumn Budget should prompt organisations to assess where the operational bottlenecks are within their workflow and whether targeted technology investment could deliver measurable productivity improvements, and with the first-year allowance increasing to 50%, now is the time to do it.”
For organisations looking to improve efficiency following the Budget announcement, Mark says the starting point should be understanding where time and money are being lost through manual, disconnected or overly complicated ways of working. He suggests four practical steps:
1. Find where manual work is slowing people down. Audit the processes that still rely heavily on spreadsheets, manual re-keying or employees moving information between different systems.
2. Identify the biggest sources of friction. Look at where legacy systems, disconnected data or outdated processes are causing duplication, delays or unnecessary work, and prioritise the areas having the greatest impact on the business.
3. Fix the process, not just the technology. Before replacing systems or investing in something new, understand whether existing tools and processes can be better connected or simplified. The aim should be to solve the underlying problem rather than simply add another system.
4. Make sure improvements deliver something tangible. Tie changes to clear outcomes, such as hours saved, fewer manual steps, faster month-end reporting or better visibility of information. Starting with measurable improvements can also make it easier to build the case for further change.
