Business confidence drops after tax hikes, says FSB report
Forthcoming hikes to national insurance have dented business confidence ahead of the Budget, according to the latest quarterly report from the Federation of Small Businesses (FSB).
The group’s small business index (SBI) has decreased from 18.6 points in Q2 2021 to 16.4 in Q3 2021.
FSB surveyed 1,383 small businesses in late September and the results reflect concern about the two-year-high tax burden.
A third of employers say they will be forced to raise prices, while 17 per cent have said they will recruit less and 16 per cent will cut back investment.
FSB national chairman Mike Cherry encouraged chancellor Rishi Sunak to cut business rates and increase employment allowance in line with its manifesto pledges from 2019.
He said, “With small business confidence dropping just at the point when they should be bullish about recovery, this Budget is the chancellor’s opportunity to deliver.”