Future Retirement Success
  • Politics
  • Business
  • Investing
  • Stocks
  • Politics
  • Business
  • Investing
  • Stocks

Future Retirement Success

Business

Cost of living squeeze ‘is holding back’ UK small businesses

by May 2, 2023
May 2, 2023
Cost of living squeeze ‘is holding back’ UK small businesses

Small businesses across Britain are warning that the cost of living squeeze is holding back economic growth, after two in five company bosses reported a drop in sales at the start of the year.

The Federation of Small Businesses said that although business confidence was rising among bosses before the summer, soaring costs and weakness in consumer demand were still weighing on activity.

According to the latest snapshot from its small business index, a record 92% of companies said costs were higher in the first quarter compared with the same period last year. After a challenging start to the year, two in five small firms expected their sales to increase in the next quarter.

The FSB said business confidence was being restored after plummeting at the end of last year, but warned there were still “dark clouds” on the horizon.

Further interest rate increases from the Bank of England could dampen the recovery of small business, while firms are also under pressure from the high costs of energy, raw materials and transport, and rising staff wage bills.

Economists widely expect the Bank to increase rates from the current level of 4.25% in response to inflation sticking above 10% in March, more than five times the central bank’s 2% target rate.

The FSB, which represents more than 150,000 business owners and self-employed workers, surveyed nearly 700 people. The reading on its small business index rose to -2.8 in the first quarter, up 43 points from the final three months of 2022, but still about 18 points below the same period a year ago.

Martin McTague, the FSB’s national chair, said: “Small firms may be about to turn the corner and rebound after the pandemic and the energy crisis, with confidence recovering alongside improved optimism for the second quarter.

“However, there are still plenty of dark clouds on the horizon that could dampen small business recovery. The prospect of further interest rate rises is causing significant disquiet, at the same time that costs remain at serious highs.”

Read more:
Cost of living squeeze ‘is holding back’ UK small businesses

0
FacebookTwitterGoogle +Pinterest
previous post
Food inflation hits another record high as pressure mounts on home finances
next post
Coronation cheers pub trade but worries on energy linger

You may also like

New funding package supports Yorkshire business in developing...

October 4, 2023

UK SMEs brace for steep rise in redundancies...

September 1, 2022

How to Choose the Right Fulfilment Company for...

November 2, 2023

NatWest launches £1 million competition to accelerate small...

April 1, 2025

Average UK rents hit record highs with £2,500...

May 1, 2023

Top CRM Software for Small Businesses

December 6, 2024

How to create eye-catching email subject lines

October 25, 2022

Nestle to close baby formula factory in Ireland...

October 19, 2023

DMARC: The ultimate guide to protecting your email...

April 6, 2023

Gatis Eglitis and EXANTE: Pioneering Global Innovation in...

December 27, 2024

    Get free access to all of the retirement secrets and income strategies from our experts! or Join The Exclusive Subscription Today And Get the Premium Articles Acess for Free

    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Recent Posts

    • TSA tells Americans their Costco cards won’t fly at airport security despite love for hot dogs

      June 7, 2025
    • Trump announces China will restart rare earth mineral shipments to US after productive call

      June 7, 2025
    • Musk feud presents ‘unprecedented’ dynamic compared to past Trump disputes: expert

      June 7, 2025
    • Snub of Musk’s NASA nominee ally preceded sudden ‘big, beautiful bill’ criticism, Trump feud

      June 6, 2025
    • Supreme Court rules DOGE can access Social Security information

      June 6, 2025
    • US sanctions money laundering network aiding Iran as regime faces nuclear reprimand at IAEA

      June 6, 2025

    Categories

    • Business (8,149)
    • Investing (2,019)
    • Politics (15,558)
    • Stocks (3,134)
    • About us
    • Privacy Policy
    • Terms & Conditions

    Disclaimer: futureretirementsuccess.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2025 futureretirementsuccess.com | All Rights Reserved