Small firms have sounded the alarm over the ‘devastating’ impact of Labour’s tax hikes and soaring energy bills.
As confidence collapses to the lowest level since the pandemic, the financial squeeze means jobs are being cut and investment plans have stalled, a poll by the Federation of Small Businesses (FSB) said.
‘The human cost of these numbers is devastating,’ said Tina McKenzie of the FSB. ‘Small business owners who have spent years building something stable are now being forced to make painful decisions, putting growth on hold simply to stay afloat.’
The report pointed to the impact of the Government’s botched business rates reform as well as a feared ‘energy bills time bomb’ when charges go up in April.
And it revealed that even more firms are worried about tax – which remains the number one concern for small business bosses.
‘When a record 64 per cent of firms say taxation is their biggest cost pressure, higher than labour or energy, it points to a system that is making employment and investment increasingly difficult to sustain,’ said Ms McKenzie.
Chancellor Rachel Reeves delivering last year’s budget. As confidence collapses to the lowest level since the pandemic, the financial squeeze means jobs are being cut and investment plans have stalled, a poll by the Federation of Small Businesses (FSB) said
‘They’re being squeezed by policy choices that have made growth unaffordable.’
It came as separate figures from another business group, the British Chambers of Commerce (BCC), showed fewer than one in four firms (23 per cent) expect to increase the size of their workforce in the next three months.
Jane Gratton, deputy director of public policy at the BCC said: ‘As more firms struggle under the weight of rising cost pressures, we are beginning to see an adverse impact on the jobs market.
‘High taxes and rising wage bills present huge barriers to investment and growth.’
