The first Small Business Index for 2018 in London has shown that while confidence in the Capital is still considerably higher than the UK average there is still a significant concern about the high costs of doing business.
There has been a rebound in confidence in London. Last quarter, confidence in the capital fell to its lowest level in almost six years.
However, the cost of doing business in the Capital is stifling business ambitions with 15% of businesses saying that they intend to contract the business in the next twelve months (to downsize, sell or close the business).
The FSB are calling on the Government to create an increased inner and outer London small business rate relief (SBRR) threshold that reflects the specific problems faced by small businesses in the capital. See note to editors (3)
The main results for London were:
Sue Terpilowski OBE, London Policy Chair, Federation of Small Businesses, said:
“This fresh data for 2018 shows how resilient and optimistic small business owners in London continue to be – that goes with the territory of starting and running a business. However, we must recognise that for many small businesses the cost of doing business is weighing them down. These businesses are beginning to feel like boxers taking jab after jab whilst on the ropes.
“Cost pressures include the high cost of rail travel which are putting additional pressure on wages for London businesses, the higher cost of employing staff generally and the heavy burden of cripplingly high commercial space costs. With the business rates revaluation from last April impinging on the bottom line, national and local Government, along with the Mayor, must be on their side in 2018 to take businesses off the ropes and back fighting in the centre of the ring.”
download the small business index here
Notes to Editors