Figures released today by the Federation of Small Businesses (FSB), show that confidence amongst firms in the West Midlands has plummeted during the last three months. This is in stark contrast to the first quarter of 2022, when confidence was rising.
The latest FSB West Midlands Small Business Index report shows that surging operating costs, a high tax burden and struggles to fill vacancies are now threatening the futures of small firms and sole traders across the region.
The quarterly report, based upon a survey of national and local business owners, shows that small firms’ revenues, profits and employment levels all came under intense pressure during the past three months.
While 37% of respondents saw revenue increase during the period, 41% recorded a fall. The proportion expecting future revenues to increase (37%), is lower than the proportion bracing for a decline (39%). Employment levels increased for 11% but fell for 12%. More than two thirds (67%) of business owners reported that their wage bills had increased and more than three quarters (76%) predicted further rises in the coming 12 months. Overall, the region’s small business owners are reporting negative trends and increasing costs across a range of key performance indicators.
Rob Harrison, FSB West Midlands policy spokesman and owner of the Glued design and marketing agency in Leamington Spa commented:
“The Government’s own statistics show that small business closures ran into the hundreds of thousands over lockdown. Unless policymakers act fast, this trend will continue.
“We need action now, to address the cost of doing business crisis and to stop good businesses going to the wall because of uncertainty around government leadership and economic policy.
“That’s why FSB is looking to prime ministerial candidates for unequivocal pro-business, pro-growth commitments. There is still time to act, but time is of the essence.”
Download the full report here.