Small firms struggling to keep their heads above water

Research by Bibby Financial Services has found just under two in five SMEs were “just about breaking even” with the economic environment causing “friction and fragility” for business owners. In a poll of 500 companies, respondents said the war in Ukraine and supply chain problems were key concerns. More than a quarter highlighted cashflow as a worry while almost 20% said they needed short term financial support more now than before the pandemic as more companies reported issues with late payment of invoices. Although businesses reported feeling slightly more confident than they did a year ago, “many are still struggling to keep their heads above water and [are] operating on a day-to-day basis, rather than looking ahead to growth,” said Derek Ryan, UK managing director at the lender. “Cashflow challenges and payment issues continue to plague businesses. It’s critical they receive support from the private and public sectors, and we’d urge policymakers to look at wider tax cuts and energy grants to help SMEs.”

The Times

Related Post

Reeves urged to abolish the £175,000 residence nil-rate band The Chancellor is facing pressure to eliminate the £175,000 residence nil-rate band in her upcoming Budget. Rachel Reeves previously argued that this allowance, which costs around £2bn annually, primarily benefits the wealthy and now the Resolution Foundation is pushing her to scrap it. In 2011, she stated: “Raising the inheritance tax limit to £1m for […] By Lisa Brownlow, 18 September 2024
Read Now
Small firms responsible for 80% of tax evasion Analysis by the National Audit Office (NAO) shows that small firms are responsible for more than 80% of tax evasion. The report cites HMRC estimates that £5.5bn was lost to deliberate tax evasion in the 2022/23 financial year, with small businesses responsible for 81% of the total. Despite a reduction in the overall tax gap […] By Lisa Brownlow, 16 September 2024
Read Now
Threshold freeze creates 4.4m more taxpayers The number of people paying income tax has increased by 4.4m in three years due to the freeze on thresholds, according to HMRC data. The figures also show that the decision to freeze the personal threshold at £12,570 has pulled an additional 1.77m pensioners into the income tax bracket. There are currently an estimated 37.4m […] By Lisa Brownlow, 3 July 2024
Read Now
↑