London Small Businesses Worry About Tariffs, Taxes, and Slipping Sales
Newsflash: In the heart of the UK capital, the tiniest of shops are looking over their shoulders with worry more than a contortionist at a circus. According to fresh research from Novuna Business Finance, about 78 % of London’s small business owners are on edge.
Why the Capital’s Backbone Feels the Pinch
- US Tariffs on the UK: Almost 19 % of London merchants are jittery about how the latest American levies will ripple through their supply chains.
- EU & Other Nations: Tariffs on the European Union, Canada, Mexico, China and Japan are raising nerves for an additional 12 % and 9 %, respectively.
- Future Taxes: Nearly half (48 %) fear the coming wave of UK tax hikes that could hit the pocketbooks hard.
- Consumer Confidence: About 38 % worry that global drama will make shoppers tighten their wallets—less spent money, less cash on the register.
Can the Big City’s Small Shops Still Dream of Growth?
Despite the dread in the air, 48 % see a quick burst of growth in the next three months—up from 39 % earlier in Q1 2025. London’s been the beacon of optimism for small businesses across the UK, and when the capital’s chatter turns anxious, the whole nation should pause.
Expert Take
Joanna Morris, Head of Insight at Novuna, quips:
“The short‑term outlook in London is bright enough to keep the lights on, but the looming threats—tariffs, tax hikes, and a shaky consumer mood—are like a storm cloud on a sunny day. London’s the weather vane. If it’s worried, we all should listen.”
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