November’s nearly-flat growth in GDP offers little comfort to small firms, and it reflects the difficult trading conditions they have been consistently reporting.
However, yesterday’s news that inflation rose by less than expected will give small firms a measure of hope that interest rates could fall in the near future, something that is badly needed.
The Government must now make good on its statements that growth is its number one priority.
Its recent call for regulators to put forward suggestions for growth-friendly changes they could make is one small businesses will welcome.
Support for small firms must also be at the core of the three strategies which will be unveiled this spring: the Industrial Strategy, the Small Business Strategy and the Trade Strategy.
Looking ahead, the proposed changes in the Employment Rights Bill are much less promising. With nine in ten small firms expressing concern about the Bill, and with two-thirds saying they are preparing to hire fewer staff, the Bill risks dampening growth, and harming the economy by reducing employment levels and deterring expansion.
The forthcoming Spending Review must be used by the Government as an opportunity to look at how to support small businesses. Small business owners, limited company directors, and the self-employed should be shielded from future tax rises, as it is small and medium-sized businesses who are the ones with the greatest potential to grow, if given the right conditions.
