Hampshire Federation of Small Businesses says businesses need more support
Tax burdens on businesses are at the highest in a century and energy and supply costs are continuing to creep up, according to new research on the lead up to Chancellor Rachel Reeves' Spring Statement.
The Hampshire Federation of Small Businesses is telling us there needs to be changes made in the Spring Statement to help support our local businesses.
Tax burdens on businesses are at the highest in a century and energy and supply costs are continuing to creep up, according to new research on the lead up to Chancellor Rachel Reeves' Spring Statement.
Nicky Kildunne, Regional Business and Stakeholder Manager for the FSB, is telling us how small businesses are feeling.
She said: "We're really in a cost crunch at the moment.
"The pressure on small businesses at the moment is massive.
"Small businesses are extremely resilient but they're definitely not invincible.
"So there's lots and lots of worry about some of these changes that will come into effect from the 1st of April."
The Chancellor is set to announce the Spring Statement on the 3rd March.
Ms Kildunne says changes are already having a "huge" impact on businesses with increased costs and rises in business rates.
She said: "In our small business index, which we do quarterly, we're hearing 35% of businesses are telling us they're thinking of shrinking or downsizing, compared to the 21% who are thinking about growing.
"This is the first time we've had such a shift in the amount of businesses that are having to think about shrinking rather than growing."
In a survey of the nation’s small business owners (of which there are 5.5 million in the UK) shows they are working harder than ever for diminishing returns.
With the ongoing cost-of-living crisis, consumers are understandably price sensitive, meaning SMEs are reluctant to pass rising energy, employment, and supplier costs on.
As a result, SMEs are being forced to absorb those costs and erase their own profit margins.