The Federation of Small Business calls for the government to act to prevent businesses from closing

Costs, late payments and inflation are just some of the things local businesses are struggling with.

Aldeburgh high street, Suffolk, UK.
Author: Jasmine OakPublished 24th May 2024

With the Prime Minister's announcement of a general election and only 40 days until people in Suffolk, and the rest of the country, vote in the next General Election, the Federation of Small Businesses (FSB) is calling for political parties to take effective action to keep small businesses alive.

According to a Larking Gowen study - around one in 10 independent retailers in the East of England are considering shutting up shop - as spending on the high street falls

Martin McTague from the FSB revealed there are 5.5 million small firms in the UK and they need to be considered in this election.

A further 16.6 million people are employed by small businesses.

Martin believes those competing in this election will need "a convincing plan" to bring down the costs businesses face along with a plan of how to support small businesses to grow, as well as encourage new businesses to start.

Candy Richards, also from the FSB explained how small businesses are still struggling with the cost of living crisis, "huge cost increases" and "inflation."

She explained that many businesses face incredibly squeezed margins and they don't want to pass on the cost to their customers as that will deter people from spending even more.

Going on to say how the general public continues to be spending less, meaning local businesses have less cash flow.

Another issue with cash flow they are facing is late payments - Candy emphasised how often they see "big businesses delaying paying their bills on time to small businesses" and how this can have a knock on effect to a small businesses survival.

She wants to see the following from the government

  • "Reform in the energy market so they are working in a far and proportionate way for our small businesses."
  • Reform in business rates to reduce that tax burden on small businesses.
  • A decrease in inflation.

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