A recent survey conducted revealed some harsh realities that were anyways anticipated for some time now keeping the Brexit vote in mind. It has been found that the business confidence has fallen to a four-year low. Only a few businesses now expect the revenues and profit to grow and almost everyone has put expansion plan on hold.
The survey that was done between April 21 and May 9 indicates that business confidence took a beating from 37.9 last year to 4.3 this year, which is a huge downfall and also one of the worst figures since 2012.
The Federation of Small Businesses (FSB) has, therefore, urged the policy makers to intervene and give confidence to these businesses that things will improve soon. FSB wants clarity in areas like access to European markets, which is important for the businesses to grow and flourish.
The business secretary Sajid Javid, however, wrote to more than 100 businesses and trade bodies this weekend reassuring them that the government will keep their interests in mind and will do all that is needful.
Mr Javid is reported to have written – “Now more than ever, businesses need certainty to ensure the best outcome for the UK economy in the coming months so it’s vital that the government maintains an open and continuous dialogue.”
The National Chairman of FSB, Mike Cherry said that since 2009 this is the first time that recession is looming large over the UK economy. Though the members of FSB were reporting tough conditions even before the referendum, now they are more pronounced.
Andy Willox, FSB’s Scottish policy convenor said – “The survey figures show that small business confidence was already shaky ahead of the EU vote. Now that the UK is set to leave, businesses need to know what it will mean for them in practice.” He further continued, “While legally nothing has changed since last week, the markets in which businesses operate are already in motion. For example, currency fluctuations will have had a big impact on importers and exporters.”
As businesses are planning to cut jobs for the second consecutive quarter, he urged that there was an urgent need to do things that will support small businesses to weather these harsh economic headwinds.