Sunday, July 5, 2020

UK savings landscape failing 4.7 million self-employed

The number of small firms planning to decrease investment has hit an 18-month high, according to new research from the Federation of Small Businesses (FSB).

It was announced this morning that UK business investment fell to £46.1 billion between Q4 2017 and Q1 2018.

Seven in ten (69%) small firms are not planning to increase investment over the next three months. One in seven (14%) are planning to decrease investment, the highest proportion since Q3 2016.

Almost two thirds (61%) say they are operating below capacity, while more than seven in ten (71%) report a rise in operating costs this quarter. The figure is up 10 percentage points compared to the same period in 2016 and is close to the record-high proportion recorded six months ago (74%).

Last month saw a rise in both minimum wage rates and auto-enrolment contributions for employers, as well as an increase in business rates for thousands of small firms.

FSB National Chairman Mike Cherry said: “It’s hard for small firms to invest when £14 billion is being withheld from them due to late payments. If all of your working capital is tied up in invoices, then clearly you won’t have the cash needed to invest for the future. Following the collapse of Carillion, big corporations need to realise that late payments aren’t a smart move, they’re a threat to our economy.

“Last month saw thousands of small firms hit by increases in minimum wage rates, auto-enrolment contributions and business rates. Meanwhile inflation remains well above the government’s two per cent target. Small businesses are seeing margins squeezed, leaving less to invest in the technology, training and research they need to increase productivity.

“The incentives to invest are there but they’re not being accessed by the small firms that really need them. More than half of small firms haven’t even heard of R&D tax credits, for example, and bigger firms tend to be better at completing the complex process of applying for them.

“On top of all this we still don’t have a clear sense of what our future relationship with Europe looks like, making it harder to invest for the years ahead.”

A message from the Editor:

Thank you for reading this story on our news site - please take a moment to read this important message:

As you know, our aim is to bring you, the reader, an editorially led news site and magazine but journalism costs money and we rely on advertising, print and digital revenues to help to support them.

With the Covid-19 lockdown having a major impact on our industry as a whole, the advertising revenues we normally receive, which helps us cover the cost of our journalists and this website, have been drastically affected.

As such we need your help. If you can support our news sites/magazines with either a small donation of even £1, or a subscription to our magazine, which costs just £33.60 per year, (inc p&P and mailed direct to your door) your generosity will help us weather the storm and continue in our quest to deliver quality journalism.

As a subscriber, you will have unlimited access to our web site and magazine. You'll also be offered VIP invitations to our events, preferential rates to all our awards and get access to exclusive newsletters and content.

Just click here to subscribe and in the meantime may I wish you the very best.






Latest news

Broadmarsh retail partnership enters compulsory liquidation

The partnership redeveloping Nottingham's Broadmarsh shopping centre has been wound up. Petitions have also been presented against related companies and these have also entered compulsory...

Staton Young swoop for ‘The Post House’ in Derby

Staton Young Group has purchased ‘The Post House’ on Victoria Street, Derby for an undisclosed sum through FHP. In a record-breaking deal, Staton Young secured a...

East Midlands businesses’ cash generation worryingly low heading into COVID-19 crisis

East Midlands businesses’ cash generation has stayed worryingly low heading into the cash crunch triggered by the COVID-19 pandemic, shows a new study by...

University of Lincoln research predicts digital future for law firm

Students participating in the University of Lincoln’s Graduate Skills Builder programme have recently submitted a report following a market research project to a regional...

Record year continues at GIC

A Lincolnshire packaging machinery manufacturer’s strong start to 2020 has continued this month, with the company sending a record number of machines out of...

Related news

£500k funding boost for Kegworth village centre

Kegworth village centre is set for a major revamp after £500,000 of funding was secured this week by North West Leicestershire District Council (NWLDC). The...

Broadmarsh retail partnership enters compulsory liquidation

The partnership redeveloping Nottingham's Broadmarsh shopping centre has been wound up. Petitions have also been presented against related companies and these have also entered compulsory...

Staton Young swoop for ‘The Post House’ in Derby

Staton Young Group has purchased ‘The Post House’ on Victoria Street, Derby for an undisclosed sum through FHP. In a record-breaking deal, Staton Young secured a...

East Midlands businesses’ cash generation worryingly low heading into COVID-19 crisis

East Midlands businesses’ cash generation has stayed worryingly low heading into the cash crunch triggered by the COVID-19 pandemic, shows a new study by...

By continuing to use the site, you agree to the use of cookies. more information

The cookie settings on this website are set to "allow cookies" to give you the best browsing experience possible. If you continue to use this website without changing your cookie settings or you click "Accept" below then you are consenting to this.

Close