A survey by the Federation of Small Businesses (FSB) reports that there is concern that thousands of small businesses could be at risk of closure. This is based on a pole of nearly 1,500 small business owners and sole traders,This in turn is due to declining revenues and rising tax bills. The survey shows that 30% expect to either contract, downsize or collapse over the coming year. The poll revealed that 55% of companies say that their income fell over the past three months, with a £25bn tax raid having an impact. This came after changes in last year’s Budget saw the main rate of employer National Insurance contributions climb from 13.8% to 15%. In addition the earnings threshold reduced to £5,000 from £9,100. Tina McKenzie, policy chair at the FSB, said: “Millions of small businesses shrinking, closing or selling up instead of growing means a vicious cycle of a lower tax take, higher unemployment. Inevitably greater demands on the state will all exacerbate each other in a downward spiral.” 

BFS Comment:

This provides even more reasons for politicians to concentrate more on supporting the growth and economic wealth-earning potential of the Uk’s SMEs rather than taxing them to death and imposing onerous employment laws! Getting the economy back into the black has to be the priority!

If you are struggling to maintain the viability of your business; if cash-flow is a serious problem or you are struggling to carry out all of the tasks necessary to grow your business then call us at Busines Finance Services Ltd. to discuss your options. We offer a 2-hour free, no-strings, consultation. Just e-mail us at enquiries@bufinserv.co.uk or call Peter on 07770 866955 and let’s see how we can help! We should point out that we will also adopt a ‘Hands-on’ policy to projects, where necessary, rather than just advising from the sidelines!