As per the Federation of Small Businesses (FSB), confidence in business dropped considerably at the end of 2021, the third straight quarterly decline.
The FSB’s small business index, which measures investor sentiment, fell by 24.9 points between the third and fourth quarters to -8.5, the first negative reading since the fourth quarter of 2020.
The decline in confidence was most pronounced in the housing and catering services sector, which fell 35.4 points to -33, and communication services, also fell 35.1 points to 11.4.
However, because the data was collected before the government announced a shift to ‘Plan B’ measures, the FSB predicted that “confidence will have declined even farther in the meantime.”
FSB faced difficulties
The FSB added that businesses faced numerous difficulties in Q4 2021, including an increase in COVID-19 cases, widespread event postponements, rising utility costs, and planning and preparation for full shipping checks for EU goods.
On December 21, 2021, the government promised to increase £1 billion in support for businesses most effected by Coronavirus.
The FSB’s national chair, Mike Cherry, and vice chair, Martin McTague, stated:
“Over the past two years, small businesses have once again demonstrated their resilience, tirelessly adapting and innovating and persevering on through yet another immensely difficult golden quarter.”
“What they need to do now is this government to reestablish its pro-enterprise, overhauling zeal and propose policies that will encourage a small business-led recovery while attempting to avoid tax hikes that will harm societies and stifle growth.”
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