Confidence is lagging among small business operators, according to a new poll.
The Federation of Small Businesses (FSB) said sentiment among members over trading prospects had worsened for the first time since the immediate aftermath of the Brexit vote.
It said that 52% see a slowdown in the UK economy as a barrier to growth. Business is being hit by inflation and signs of a slowdown in consumer spending.
The FSB said that labour costs and the tax burden were also “commonly flagged” concerns.
Operating costs for small businesses are at their highest in four years, the group added.
The group said that consumer-facing businesses had experienced the sharpest drop in confidence
Mike Cherry, the FSB’s national chairman, told The Times: “Consumer-facing businesses are really starting to feel the squeeze. Many small firms that operate in the retail and hospitality sectors depend on EU workers. Ensuring these vital employees have the right to remain needs to be a first port of call once Brexit talks launch.”
The group called for funds promised to small companies hit hardest by the business rates revaluation that took effect in April to be urgently released.
Cherry said: “The £300 million hardship fund announced at the spring budget to help those worst affected offered a glimmer of hope, but is yet to materialise. With the election out of the way, there’s absolutely no excuse for local authority debt collectors chasing small businesses for incorrect, overinflated bills without the emergency relief applied. The communities secretary needs to make distribution of this fund his top priority.”
