UK Small Businesses Are Thermostatic at the 2022 Hot‑Spot
Alright, press them a few times – small businesses across the UK are feeling the burn from fuel, energy and the ever‑refreshing inflation storm. A fresh report from Simply Business (think of them as the insurance concierge for little companies) surveyed over a thousand SMEs, and the verdict? “It’s hot! It’s hot!”
The Heat‑Is‑On Figures
- 70% of owners say skyrocketing costs are the biggest headaches of the year.
- 36% (roundly 1‑in‑3) fear the new tax and national insurance hikes more than anything else.
- Half (49%) are already itching to raise prices to cop a bit of the extra spend.
- About 21% plan a price hike of 6‑10% – a practical move, but it will make customers sigh.
- Only 7% are ready for a monstrous 20% jump – that’s the silver‑lining for the bold.
The Political Thermometer
- Three out of five (59%) want the government to review or reduce the energy price cap – even though that cap is for homes, not businesses.
- One‑fifth (21%) would like a VAT cut to be re‑examined or extended.
- Over 12% think the government should reduce national insurance for private firms.
Why Fuel Matters Perpetually
Even though the energy price cap doesn’t directly hit SMEs, their bills are still soaring – because everything that runs a business now costs more. A runaway fuel price leaves less breath for marketing, staff, or a quiet coffee break.
Consumer Power — Oh, the Silver Lining!
With households tightening their purse strings, businesses in food, drink, hospitality and retail feel the squeeze. Less discretionary spending means fewer footfalls, lower sales and a tidal wave that hits the very recovery phase post‑pandemic.
Financial Hang‑Ups: 22% in Danger Zone
- One in five SMEs (22%) say lack of funds or credit could bring their business to a dead‑stop.
- During the past two years, 87% of owners lost an average of £20,981 each.
- Covid‑19 cost the UK a whopping £109.6 bn – and 16% feel they’ll never recover.
- Half (62%) think the economy will sour in the next six months, yet full of optimism (71% are very confident about 2022) – a paradox that only a super‑hero entrepreneur would find thrilling.
Professor & CEO Take the Stage
Jonathan Portes (King’s College London) warns: The likely reaction is to tighten belts, pause expansions, and try not to lay off staff until the economic tide calms – because consumer confidence is key, and that’s the pocketwatch of business resilience.
Alan Thomas (Simply Business CEO) reminds us: “Managers are at the breaking point, and the 2022 cost spike is a sabre‑to‑the‑chest of recovery. We need government support – especially reducing energy caps, because a licence to breathe will keep the whole circuit humming.”
The Bottom Line
If you’re a small business owner who’s feeling the heat, you’re by no means alone. With energy costs, tax hikes and customer spending all racing in the same direction, the fight is real. What the report screams (and the nation hears): support now, because the future can’t afford an increased pause.
