"The cost pressures on small businesses and self-employed people have built and built, and too many within the community are now at a very dangerous point. Late payments from large companies are exacerbating the pain they are feeling, while the prospect of a 'costs timebomb' hitting in April - a potentially fatal combination of higher business rates bills, hikes to standing charges on energy bills, and a higher National Living Wage - presents a moment of real danger to small firms."
"Last year was one many small business owners would prefer to forget. Confidence fell in every quarter, according to our research, ending in a post-COVID nadir of -71 points in the final three months of 2025. The sluggish performance of the UK economy was the top-cited barrier to small firms' growth prospects across all four quarters of last year, followed by the tax burden, showing how small businesses and self-employed people are caught in a tricky spot, between low growth and rising fixed costs."
A small uptick in GDP has not translated into relief for many small businesses and self-employed people. The Autumn Budget provided insufficient support while large corporates retained cushions from huge balance sheets. Cost pressures have accumulated to dangerous levels, worsened by late payments from large companies. A 'costs timebomb' in April—higher business rates, energy standing charge hikes, and a higher National Living Wage—threatens many firms' survival. Confidence fell each quarter, ending at a post-COVID nadir of -71 points, with low growth and the tax burden cited as top barriers. Rebuilding small business confidence and legislating to tackle late payments are urgent priorities.
Read at London Business News | Londonlovesbusiness.com
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