Small firms warn GDP rise masks real economic distress

Small firms warn GDP rise masks real economic distress

Small Business Blues

Why Small Firms Are Feeling the Pinch

When the Small Business Index (SBI) comes out, it’s like a crystal ball that’s a tad gloomy. For the first time ever, 27% of small companies are scared of shrinking, shutting down, or selling in the next year, while only 25% think their businesses will grow.

The Ripple Effect on the Whole Economy

  • Hiring slows down → fewer jobs created.
  • Investment plans go on pause → slower growth.
  • Collectively, these slowdowns tug on the national economy.

Government’s Small Business Plan – A Ray of Hope

We’ve got a new playbook from the government.

  • Stop late payments: Each day, 38 firms vanish because of delayed bills.
  • Make borrowing easier and cheaper so small businesses can ignite new projects.
  • Slash regulatory red tape by 25% — a promise that will be watched closely.
What’s Still Missing?

Despite the promises, big headaches remain.

  • Business rates continue to weigh heavy on small firms.
  • The Small Business Plan’s commitment to tackle them is welcome, but we’ll need the Autumn Budget to give a genuine boost.
  • Last but not least, help the smallest businesses survive on high street to give these community hubs a fighting chance.
The Role of the House of Lords

The Lords have tossed in a few clever tweaks to the Employment Rights Bill that go a long way in easing the pressure on hiring.

Let’s keep it real: we need to create a climate where small firms can thrive, hire people, and propel local economies across the UK.

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