Cost Of Doing Business Crisis
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04 Dec 2013
Businesses are facing a cost of doing business crisis, alongside the cost of living crisis which is hitting families across Britain.
Because of inflation, businesses are set to be hit by rises in business rates of £430 on average next April, at a total cost to business of £700 million. This is happening year-after-year; they have already gone up an average of £1,500 since 2010. Many businesses are now paying more in business rates than they do in rent.
The choice for many shops, workshops, start-up businesses and others who pay business rates is to pass these increases on to their customers through higher prices – adding to the cost of living crisis – or face a continuing squeeze until they can no longer afford to stay in business.
Demonstrating the cost of doing business crisis, a recent survey of its members by business organisation the Forum of Private Business found that action on business rates is the number one demand from small firms, while 87 per cent reported that energy costs have gone up in the last year and 83 per cent believe costs of doing business will rise over the next year.
Small businesses are the driving force behind future jobs and growth. They now account for more than half of the economy and most new jobs in the next 15 years will be created by businesses which don’t yet exist.
This week sees the UK’s first ever Small Business Saturday, which is set to be the biggest celebration of small business this country has ever seen. I would like to encourage people to use our local shops on what is one of the busiest shopping days of the year.