The Brief: New research from software company FreeAgent found that 64% of business owners in the UK are worried that they will shut down in the next 12 months. In addition, 62% believe that they are either the same or worse off under PM Rishi Sunak’s leadership, and 23% of SMEs believe that Brexit and/or the pandemic has damaged the country’s economy irreversibly.
Why It Matters: The national chair of the Federation of Small Business (FSB), Martin McTague, believes that the Autumn Statement has put pressure on the country’s 5.5 million small business owners, employees and customers because of the tax hikes that will be implemented.
Finanze Business Foresights: Rising wages, energy costs and finding people with the right skills are just some of the growing concerns among businesses that paint a gloomier outlook for the coming year. With the Bank of England (BoE) warning that the country is heading for its longest recession in a century, enterprises will remain under a huge amount of pressure as a result of soaring inflation and geopolitical uncertainties. Those that have taken a loan during the peak of the pandemic face a tougher year ahead, especially when their loans are on floating rates, since their borrowing will drag their profitability to a decade low. Those without existing borrowing may need to look to increase liquidity either to survive or to take advantage of competitors distress to take market share.
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