Small Business Confidence Hits Record Low, Warns FSB

Small business confidence in the UK has plunged to its lowest level since records began in 2008, with more owners expecting to shrink or shut down than to grow in the year ahead, according to a new survey by the Federation of Small Businesses (FSB).

NFFF President, Andrew Crook said “This survey highlights the pressure small independent hospitality businesses are currently under and the NFFF urges government to engage with the sector more closely ahead of the budget this autumn as time is running out for many of these operators.”

The survey, reported by The Sunday Times, found that 27% of small business owners anticipate closing, downsizing or selling their businesses in the next 12 months. Only 25% expect to expand.

Tina McKenzie, the FSB’s policy chair, described the outlook as “a very dangerous situation,” blaming tax rises introduced since Labour came to power for worsening pressures.

“Confidence being so low, and not showing any improvement since the start of the year, is bad enough,” said McKenzie. “Stagnation and pessimism among small businesses spells huge risk for the overall economy.”

The figures underscore growing fears that the backbone of the UK economy, could be facing a prolonged period of decline.