Small business confidence grows — but it’s still stuck in negative territory
Small business confidence is growing despite still being considered in negative territory for the sixth quarter in a row, according to the Federation of Small Businesses‘ third-quarter Small Business Index.
Confidence was at -8 points in the three months quarter ending in September, the FSB said — up from -14.2 in the previous quarter but still worse than the first quarter’s -2.8.
The index has not seen positive territory since first quarter of last year, before the economy was hit by soaring inflation and the energy crisis, it said.
Martin McTague, FSB’s national chair, said: “After the economic turmoil wrought by the cost of doing business crisis over the past year and a half, our latest Small Business Index shows signs of stabilisation in small firms’ performance.
“The improvement in the overall confidence measure since Q2 is a good start, but we really want to see it firmly back in positive territory, rather than eight points below zero, as it is currently.”
Hospitality businesses were the least confident, sitting at -31.1 points for accommodation and food service activities, with retail and wholesale businesses coming in next at -22.8 points.
The FSB said more support was needed in these sectors, with the upcoming Autumn Statement giving the Government a chance to announce measures to help, such as the SME-focused 75 per cent rates relief extension which is due to end in March.
McTague added: “The 75 per cent business rates discount for small retail, hospitality and leisure firms is due to run out at the end of March next year — it must be renewed past that date, to give relief to small businesses in consumer-facing sectors.”
A Treasury spokesperson said: “We are fully committed to supporting businesses, and know this is key to growing the economy.
“That is why we have provided tax relief to thousands of businesses, with one third free from paying business rates and others having their bills slashed by 75%.
“We have also protected businesses from rising energy costs and are keeping the duty on pints down through our Brexit Pubs Guarantee.”