Partner Article

Small business confidence ends 2010 at lowest level

SMALL businesses confidence fell in the final quarter of 2010, according to a report.

The Federation of Small Businesses’ (FSB) latest ‘Voice of Small Business’ Index revealed that business confidence fell for the third successive quarter to a net score of -13.2, the deepest decline since the survey began in March 2010.

The report, which looks at the general health of the small business sector, highlighted the severe weather at the end of the year and the rise in VAT as key indicators.

John Walker, National Chairman, Federation of Small Businesses, said: “A number of pressures on small businesses are beginning to come to a head, such as the increase in VAT and fuel duty, placing more strain on cash-flow.

“This combined with the severe weather at the end of 2010 has meant that small firms are not as confident about their prospects in 2011.”

Additionally, small businesses expect employment growth to weaken in the coming months, with 77.7 per cent of small firms expecting to keep employment levels the same, but 12.4 per cent expecting to decrease the number of staff they have – up from 10.4 per cent in quarter three.

The FSB is urging The Bank of England to keep the base interest rate at 0.5 per cent to help keep the focus on growth.

This was posted in Bdaily's Members' News section by Ruth Mitchell .