FSB sounds warning about business confidence across East of England
Business owners in the region aren't felling confident about the state of the economy
Last updated 10th Aug 2023
A group representing small businesses in Suffolk says lots of people in the county could be out of work soon - if things don't improve.
The Federation of Small Businesses latest survey shows that business owners' confidence was significantly lower in the East of England than the national average.
Candy Richards is from the FSB, and told us just under 50% of businesses in the East of England have recently seen 'their revenue decrease', and, if things don't improve, they're predicting they'll see a "continued squeeze on their revenue" in the next few months.
Candy went on to tell us about some of the things that are adding pressure to these businesses:
- Wages - "Businesses aren't necessarily increasing the number of staff working for them, but what they are increasing is the salaries because the cost of living is so high."
- Not investing - Candy explained that many businesses are in 'survival mode' at the moment and cannot afford to grow and invest.
- Energy Bills - "They're at record levels now. They have fallen back a little, but there are many businesses that were locked into very high energy contracts last year when the cost
- of energy was at its peak."
How does this impact the public?
Candy made clear the impact small businesses have on communities and the economy: "Around 3/5 of jobs are provided by small businesses and about 50% of turnover is delivered by small businesses."
What help they would like to see
Candy told us there are a couple of things the government could do to help struggling businesses: "Pushing up the VAT Rate from £85,000 to £100,000 would help small businesses to keep their costs low."
She also mentioned late payments are a big issue for small businesses and if anyone is late in paying it can cause large issues for cash flow: "We feel actually that the government should be taking strong action on this."