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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