Small Business Confidence Falls to Record Lows in the UK
Arslan Butt • 1 min read
A recent survey by the FSB reveals that revenue growth among small businesses in the UK has fallen to record lows due to the coronavirus pandemic and the resulting lockdowns. FSB’s Small Business Index (SBI) – a measure of business confidence, fell to -32.6 during Q3 2020, 28 points lower than the previous quarter’s reading.
56% of the survey’s respondents stated that they had experienced a decline in their revenues, and 50% expect revenues to fall into the next quarter. 66% of small businesses have forecast a decline in their performance over the next three months, while only 34% are optimistic about an improvement in business performance during the period.
FSB national chairman, Mike Cherry, observes, “If we want small business owners to create jobs, we have to bring down the costs of employment, starting with Employer National Insurance Contributions. Short memories are common in a crisis but we must not forget that small firms were already under the cosh thanks to political uncertainty, rising costs and creaking infrastructure well before the Spring.”
UK finance minister Rishi Sunak has recently announced more financial support for businesses, including grants and more wage top ups under the government’s job subsidy scheme. However, Cherry has asked for more measures to support self-employed, company directors and workers in the most impacted industries, including retail, leisure and hospitality.