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The London Small Business Index (LSBI), which measures confidence amongst businesses, has fallen since the last quarter. In London the confidence level currently stands at -14; Last month it stood at +43
The Key highlights of the survey:
- Over 1 in ten (14%) of small businesses in London have seen decreased staff numbers in the previous quarter
- In terms of Wage Growth, over half (53%) of London small businesses increased the average salary awarded across the business over the last 12 months – with 49% increasing the average salary by 2% or more.
- Investment intentions going into the next quarter remain positive and have risen slightly since the previous quarter, sitting well ahead of the rest of the UK. 25% of small businesses in London expect to increase investment in their business over the next three months. 55% of small businesses in London said that their growth aspirations in the next 12 months were to grow either rapidly or moderately
In London, the general economic conditions in the UK (68%), appropriately skilled staff (32%), consumer demand (25%) and foreign economies (29%) are the greatest perceived barriers to growth over the coming twelve months.
FSB London is separately releasing the results of our Ultra Low Emissions Zone/Road User Charging survey. Our findings show that the Mayor and Transport for London must heed concerns of small businesses with many simply unable to afford the cost of a compliant vehicle by August 2023. We are calling for an all-encompassing Vehicle Scrappage Scheme to support small businesses.
Rowena Howie, FSB London Policy Chair, said:
“The London Small Business Index has gone into reverse gear over the last quarter, and it is evident that external factors are playing a big part in this negative sentiment. The cost of doing business in London is increasing from all angles. From the costs of materials to the price of filling up the tank to paying sky high energy bills – and this is before we even factor in the cost of commercial space and employment tax rises.
“Firms desperately need help with the charges that hit them regardless of profitability: business rates, national insurance, utilities, fuel and those linked to supply chain disruption.
“At this time of economic and political upheaval we are looking to prime ministerial candidates for unequivocally pro-business, pro-growth commitments. There is still time to act, but time is of the essence.”
The full report can be read here.