The Consumer Price Index (CPI) has risen to a four-year high (2.9 per cent), well above the Government’s 2 per cent target. The Federation of Small Businesses (FSB) has responded to the rise, calling for more support for small firms who are being squeezed by inflationary pressure.
Mike Cherry, National Chairman at the FSB, says: “Operating costs for small firms are now at their highest in four years. Small business owners and their staff are having to personally absorb these hikes and have less and less room to invest for growth. Support is urgently needed.
“Many small businesses are still reeling from the business rates revaluation that took effect in April. The announcement at the Spring Budget of a £300 million hardship fund to help firms worst affected left many feeling hopeful. But we’re yet to see that funding materialise, while many local authorities have chased down small businesses to pay incorrect, over-inflated bills. The Communities Secretary needs to get a grip and ensure this proposed support reaches those who need it most in his first days reappointed to the job.
“Our members are also under pressure from spiralling employment and utility costs. An increase in the Employment Allowance to £4,000 is long overdue. A freeze on fuel duty and Insurance Premium Tax (IPT) would also go some way to relieving the inflationary pressure that has been squeezing small businesses for months now.
“With all these cost pressures, now is certainly not the time to revisit the Government’s failed proposal to hike national insurance rates on the UK’s 4.8 million self-employed.”
With UK inflation cutting disposable income, the weaker pound and a business landscape fraught with uncertainty, it is understandable that business owners are concerned. However, due to the size and nature of their businesses, SMEs have the advantage of being able to be flexible and quick to respond to changing market conditions. The key is to partner with the right specialist adviser who will guide you on your strategy and assist in making those all-important business decisions that will have the greatest impact on future success.
At Beavis Morgan, we know that running your own business can be very rewarding, provided the right structures are in place. We are well versed in working with SMEs and owner-managed businesses of different sizes across a range of industry sectors, so you can rely on our detailed understanding of the specific kinds of issues that can arise, and you can count on our expertise and ability to provide the right solutions.
For more information about how we can help you and your business, contact Steve Govey or your usual Beavis Morgan Partner.