Small businesses are feeling "under the hammer" says Federation of Small Businesses

The federation is telling us small businesses are struggling with rising costs

Fareham Town Centre
Author: Freya TaylorPublished 6th Dec 2025

The Federation of Small Businesses is telling us small businesses are feeling "under the hammer" as they struggle with rising costs.

It comes on Small Business Saturday which aims to get people out shopping at independent traders.

Nicky Kildunne's from the federation, and is telling us what she wants to see to support small businesses.

She said: "Small businesses are feeling really under the hammer at the moment and confidence is really low.

"It's actually dropped 58 points on last quarter, which was already low.

"It had already dropped 44 points, so we're very much on a downward trajectory in terms of business confidence.

"Businesses are also suffering from rising costs and rising employment costs.

"So what we really need is for the government to put in some of the support measures that we've been asking for.

"We need them to really help the businesses, particularly those that are in retail, hospitality and leisure sectors.

"They need to use the power that they've got to lower rates and bills much more than they currently have."

The government have issued a response.

A Government spokesperson said: “We’re protecting pubs with the Budget’s £4.3 billion support package.

"Without this support, pubs would face a 45% increase in the bills they pay next year.

"This is on top of efforts to ease licensing, maintaining our cut to alcohol duty on draught pints and capping corporation tax."

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