Micro‑Biz Blues: Why Small Firms in London Are Feeling the Heat
According to the latest Capital 500 – London’s quarterly economic snapshot run by the London Chamber of Commerce and Industry (LCCI) – little‑enterprise owners are biting their nails. With costs on the rise and inflation refusing to quit, the future looks more fuzzy than a Wi‑Fi signal on a bad day.
Shaky Optimism All Around
- Only 25 % of London businesses think the UK economy will get any better in the next year.
- In London itself, just 28 % of firms expect improvement.
- Micro‑firms (under 10 employees) are especially gloomy: their “one‑person optimism score” has slipped from –1 last quarter to a daunting –10 this quarter.
Energy & Fuel: The Night‑time Drain
Ta‑ta! Energy bills have gone up for 63 % of businesses, and 51 % have seen fuel costs climb. It’s like a bad day at the gym – you’re working hard but the account keeps draining you.
Hiring is Harder Than Ever
- Only 24 % of micro‑biz owners plan to recruit new staff soon.
- Large firms, by comparison, are 47 % confident they’re hiring.
Inflation Still a Pain
More than half (57 %) of firms are still worried about inflation – and they’re as concerned as ever compared to three months ago. Demand, whether from homeowners or overseas buyers, is flatlining. In other words, the economy is in a lull – literally.
Humans Behind the Numbers
Karim Fatehi OBE, LCCI’s chief, summed it up: “We’re all navigating a tough environment, especially for the 99 % of UK businesses that are tiny but mighty. The drop in optimism is like watching a waterfall turn into a trickle.”
“The government’s upcoming Spending Review must hand out real help,” he added. “If small firms dig in, invest, hire, and train, they’ll pump life into the UK economy. London’s heartbeat makes the whole country tick.”
