Rising costs are having a huge impact on small businesses on the Isle of Wight, according to the Federation for Small Businesses (FSB).
On top of rising energy costs and surging prices, Island businesses are now facing the end of business support measures, mounting inflationary pressure, and rising taxes next month.
Analysis by the FSB shows that April’s scheduled hike in employer National Insurance Contributions in April will cost SMEs (small and medium enterprises) in the South-Central region around £390million. On average, the planned 1.25% increase will add more than £3,000 to the annual tax bill of the average SME employer.
The FSB – Britain’s biggest business representation group – invites its members to share their confidence levels on a quarterly basis and, in the run up to Christmas, they revealed a fall of nearly 30% since the previous report in the autumn. As well as confidence levels falling, the report also revealed fears over future profit levels and concern over the current economic conditions in the UK for trading. Businesses polled also reported that getting appropriately skilled staff and reduced customer demand were also among the biggest barriers to growth.
FSB Development Manager in Hampshire, Dorset and Isle of Wight, Nicky Kildunne, said:
“Our economic recovery is still fragile. Firms now find themselves bracing for an April flashpoint when a jobs tax hike is set to take effect alongside a grab on dividend income, fresh business rates bills, a rise in the living wage, and the end of Covid support measures such as a lower rate of VAT for hospitality. Added to that, an average rise across the board to general operating costs of around 14%, life continues to be very challenging for small businesses.”
“While scrapping the increase in NICs would be a huge relief, increasing the Employment Allowance by a quarter, to £5 000, would go some way to offset the worst of the pain for small employers. Before then, we’ll have the Chancellor’s Spring Statement. Our recovery will hinge on it being a pro-business one.
“There is a lot of support available to businesses in the Solent area, and various schemes which assist businesses to become more sustainable. If your business is struggling to work through the current rise in costs, please do reach out to your business support networks.”
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This time next year there be people on the streets who can’t afford to live
So many businesses have claimed Furlough etc, now the
Government wants it back plus more
That’s the Tory idea
but fear not ..the government has money to waste on refugees turning up on these shores.