Work resumes on new energy-efficient houses after contractor’s collapse
£50m worth of investment in Rotherham to move a step closer
Around £50 million worth of investment in Rotherham will move a step closer when Rotherham Council’s Cabinet meets on Monday 7 August.
Lincoln property developer wins new contract in Nuneaton
Funding support for SMEs in East Riding of Yorkshire
Training firm fuelled by investment from private equity house
Lincolnshire’s JDM Food Group merges with US firm
Firms staring closure in the face consider dipping into personal savings to keep going
About a quarter of small business owners in the UK believe that they will be forced to cease trading if the outlook for their business does not improve, with almost 1.5m SME owners considering using personal savings to prop up their business.
The SME Insights Report, published by small business insurance provider Simply Business, found that 48% of SME owners believe the rising cost of living is the most glaring challenge facing their business, with a further 63% saying that rising taxes, interest rates, and inflation are eating into profit margins.
The findings, collated using the responses of more than 1,000 small business owners, shows that small businesses are caught between a rock and a hard place – being forced to increase their prices at a time when many consumers are cutting down spending. Nearly half of the UK’s SMEs say that they intend to raise prices by up to 10%, with a further one in three (36%) increasing prices by up to 20%. The UK’s cost-of-living crisis has compelled businesses to constantly be looking for ways to stay afloat.
SME owners also cited rising energy costs and a lack of government support as the key challenges they are facing. Over a quarter of SMEs are now spending up to 40% more on energy each month compared to the previous year, with some reporting a 150% increase in their monthly energy expenses.
Jonathan Portes, Senior Fellow of the Economic and Social Research Council and Professor of Economics and Public Policy at King’s College London, said: “Two themes emerge from this report. First, the extent of the continued pressures on SMEs from the wider economic environment. While the energy price spike has abated, and labour shortages have eased somewhat, more generalised inflationary pressures mean that SMEs are being squeezed from both ends, with some input costs rising and consumer demand impacted as real incomes have fallen. Recent rises in interest rates will exacerbate both.
“Second, and more optimistically, the resilience of the sector despite all this; the vast majority of SMEs remain positive about their own prospects, not just for survival but for growth, and most also expect the economy to improve.”
Despite the challenging economic landscape, there remains a glimmer of optimism among the small business community. Over half of the surveyed businesses (54%) expressed confidence in the UK economy’s potential for improvement within the current year. Additionally, an impressive 77 percent of respondents expressed confidence in their own business prospects for the next six months.
Alan Thomas, UK CEO at Simply Business, said: “The stoic spirit of small business owners is the backbone of the UK economy – their resilience is vital to the nation’s recovery and growth. The fact that many SMEs across the UK are struggling so significantly is a serious cause for concern for the British economy and communities.
Government to pump almost £9m into training providers for ‘insulation school’
- retrofit assessor and retrofit coordinator: provision and delivery of training to PAS 2035 standards
- insulation: provision and delivery of training to National Occupation Standards or higher in the installation of domestic insulation measures
“Our members look forward to collaborating with all those working to develop green skills and make this competition a success.”
Extra Government millions could boost York’s economy by 20 per cent
City of York Council has reached a deal with government which could generate as much as £40m in additional funding to maximise the impact and benefits of York Central, the revitalisation of th4 45-hectare site alongside the railway station.