Small Businesses: Feeling the Heat
Those small firms in the real economy are no happier than a kid told they can’t eat cookies on a sunny Saturday. Rising costs, banking hurdles and sky‑high business rates are draining their pockets and slowing growth.
SBI Shows More Fear Than Growth
The latest Small Business Index (SBI) turns the dial back on optimism. For the first time since records began, 27 % of small firms say they expect to contract, close or sell in the next year, while only 25 % are looking forward to expansion.
What the Numbers Mean for the Economy
When these small units pause hiring or put investment plans on the backburner, it doesn’t just hurt their owners—it ripples out to the national growth picture. The absence of tiny engines of growth steals momentum from the whole industry.
Promises in the Small Business Plan
- Legislate against late payments that close 38 businesses every day.
- Make access to finance easier and more affordable.
- Cut the regulatory burden by 25 %.
These commitments feel encouraging, but they’re just the opening act.
But It’s Not Enough
Business rates still slap the small firms hard. The Small Business Plan promises to tackle them, yet the real win will come in the Autumn Budget, which will need to target the littlest businesses and give high streets a genuine shot at survival.
Next Steps for the Government
To give firms the confidence to hire, the government should accept the House of Lords’ amendments to the harmful Employment Rights Bill—small firms need less red tape and more room to recruit. The priority now is to nurture a climate where small businesses can flourish, employ people, and boost economies across every UK community.
