- Small Business Index (SBI) shows a third of small firms impacted by poor payment practices in recent months
- Bulk of exporters report flat or falling international sales as full import checks take effect
- Cost pressures hit seven-year high as Federation of Small Businesses (FSB) urges government to tackle surging costs and arrest decline in confidence
THE UK’s largest business group is warning that a worsening of the UK’s late payment crisis, high inflation and mounting admin for firms that trade internationally will cause the business community to further shrink in size if left unaddressed, as it releases fresh findings from its quarterly SBI.
FSB National Chairman Mike Cherry said: “The small business community diminished in size over the past year and, unless action is taken now to tackle the challenges it faces, history is set to repeat itself.
“After another frustrating festive season, small firms are facing flashpoint after flashpoint. Today, it’s a fresh wave of admin for importers and exporters – in three months’ time it will be a hike to the jobs tax that is national insurance contributions, a rise in dividend taxation, business rates bills and an increase in the national living wage. On top of that, operating costs are surging – many will soon be trying to strike energy deals without the clout of big corporates or the protections afforded to consumers.
“Small business confidence dropped in every quarter of 2021. As we head into the New Year, the government needs to act now if we’re to reverse that trend and secure an economic bounce back.
“Late Payment was destroying thousands of small businesses even before the pandemic hit – the pandemic has made matters worse.”
Ralph Morton is the leading journalist in the leasing broker sector and editor of Broker News, the website which provides information and news for BVRLA-registered leasing brokers. He also writes extensively on the fleet and leasing market in both the UK and Europe.
