Small business confidence in Yorkshire, the Humber & the North East has been hit by rising energy costs, late payments and upcoming National Insurance tax rises according to the latest FSB Small Business Index (SBI). The quarterly survey by the FSB, the largest small business survey of its kind, shows confidence in negative territory for the first time in a year.
The final three months of 2021 had something of a Groundhog Day feel for the small business community as surging Covid cases caused mass event cancellations, last-minute changes to trading rules and staff shortages. This time though, business owners are facing falling profits and inflationary pressures. The proportion of small businesses saying costs, including energy and staffing, are increasing is now at its highest point in seven years.
The upshot of these stresses and strains is that the headline Yorkshire, the Humber & the North East SBI confidence measure stands at -17% for Q4 2022. This is the first negative reading in a year.
The survey does also provide some better news as the number of small businesses in the area taking on new staff outnumbers those who are losing staff. Nearly half of small business (45%) in Yorkshire, the Humber & North East said that their aspirations in the next 12 months were to grow and 29% expect to increase investment in the coming quarter.
Gill Askew, Yorkshire, Humber and North East England Policy Unit Representative for the FSB, said;
“Small businesses are facing challenging trading conditions. Energy prices, staff shortages and late payments are major reasons why business confidence has dropped.”
“But it needn’t be all bad news. Many small businesses have strong growth aspirations. What we need now is for this Government to rediscover its pro-enterprise, reforming zeal and come forward with the policies that will empower a small business-led recovery. We need to see businesses helped with rising costs just as households have been, action to make big firms pay their suppliers on time and now is clearly not the time for a rise in National Insurance”.
