250,000 small business ‘set to fold’
At least 250,000 small businesses in the UK are set to fold in the next year without further Government support, the Federation of Small Businesses (FSB) has warned.
According to the organisation's small business index, just under 5% of the 1,400 firms surveyed said they expect to close this year.
Around 23% of smaller businesses have also lowered the number of people they employ over the last quarter, with 14% saying they’ll be forced to reduce headcount in the next three months.
The FSB added that confidence was at its second lowest level in the report’s 10-year history.
Mike Cherry, chairman of the FSB, said:
“The development of business support measures has not kept pace with intensifying restrictions. As a result, we risk losing hundreds of thousands of great, ultimately viable small businesses this year, at huge cost to local communities and individual livelihoods.
“A record number say they plan to close over the next 12 months, and they were saying that even before news of the latest lockdown came through.
“This Government can stem losses and protect the businesses of the future, but only if it acts now.”
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