Small Business Confidence Plunges

5th January 2018.

A record number of small businesses are planning to close down or sell up as inflation and weak demand from customers dents their prospects.

According to a new survey from the Federation of Small Businesses, 31 percent of SMEs expect conditions to deteriorate within the next three months.

The FSB’s national chairman Mike Cherry insists that more attention needs to be lent to domestic economic challenges at a time when Brexit negotiations are dominating the political agenda.

“While achieving a transitional arrangement with the EU is absolutely critical, it’s spiralling costs, weak growth and flagging consumer demand at home that are front of mind for small firms day to day”, he added.

Mr Cherry also pushed for further attention to the late payment culture of the UK, further aggravated by the promised emergency help on business rates still not delivered by local authorities.

On the other hand, the study found exporters are increasingly optimistic as the weak pound and strong global growth is helping to boost demand.

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