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One in Three UK Small Firms Plan to Shrink or Shut, FSB Survey Warns Before Budget

The FSB frames the November Budget as a make-or-break test for small firms.

Overview

  • FSB data show 30% of small businesses expect to cut operations, sell up or close within a year, with only 18% forecasting growth and 6% anticipating closure, which the group says could translate to about 300,000 insolvencies.
  • UK small-business confidence fell to a net -58 in Q3, the second-lowest reading since the pandemic and down from -44 the previous quarter.
  • Scotland reported the sharpest deterioration, with confidence at -69 and a net -43.7% for revenue growth, its second-weakest quarterly revenue result in 15 years; 57% said profits fell and 89.4% faced higher running costs.
  • Owners cite weak domestic growth, a high tax burden and rising labour costs as key pressures, and nearly half expect revenues to drop in the year-end trading period, with only 21% expecting gains.
  • The FSB urges measures including a higher Employment Allowance, a Statutory Sick Pay rebate and a £100,000 VAT threshold, as the Scottish Government presses for Budget support and the UK Government points to its Small Business Plan and other actions.