Small businesses are said to be suffering as the number of businesses that became insolvent in the first three months of 2019 rose by 6.3% compared to the previous quarter.
Mike Cherry, National Chairman of the Federation of Small Businesses (FSB), said, "These latest figures show the immense strain that small businesses are currently under with rising employment costs, unfair business rates as well as significant uncertainty as a result of the Brexit process.
"Both the total number of new company insolvencies as well as underlying total insolvencies have reached their highest levels since 2014, which highlights the ongoing turbulence that small firms are now up against.”
Retail is said to be one of the sectors that are struggling with higher wages and employer pensions auto-enrolment cost, with Mike continuing, "It's good to see however that there was a fall of 8.9% in the number of self-employed individuals who suffered from bankruptcies in Q4 of 2018, but this remains higher than the same period in the year before.
“The self-employed community, who are 4.8 million-strong, are still denied basic support in too many areas.
“FSB's own research has found that small businesses are spending around 15% more on the likes of taxes, levies and employment obligations than they were six years ago. Ongoing uncertainty is a critical issue for small firms and the self-employed, and central to this is the unknown nature of what the UK's relationship will look like with the EU.
“SMEs are under the cosh more than ever and it's time that action is now taken to prevent more businesses going insolvent in the future.”
Posted: 2 May 2019