It seems that there is even more uncertainty ahead as more than half (57 per cent) of SMEs believe the UK economy is heading for a Brexit triggered recession this year.
According to this article on their website, financial services provider Bibby Financial Services, believe the confidence among SMEs has declined to it’s lowest point since 2014. This isn’t typical of the first quarter results at all, as SME’s usually start a new year with renewed optimism.
This dip in faith has already had a knock-on effect on investment decisions, with the average amount of capital looking to be invested by SMEs in their businesses falling for the fourth consecutive quarter.
Edward Winterton, UK CEO Bibby Financial Services, said “If SMEs are the warning lights of our economy, this quarter signals to us that they see trouble ahead. We typically observe a seasonal bounce in SME confidence at the start of a year, as businesses begin with renewed optimism. This year, the bounce was lower than ever”
SMEs are calling for further support from government to help them through Brexit, with the opinion being that help in the form of tax breaks for businesses, lower business rates, and ensuring that tariffs on goods to the EU are avoided.
Rising costs, as well as the ongoing uncertainty, are taking their toll and Winterton added: “There is often talk of protecting the City of London from Brexit, but our SMEs need protection too. I hope the government will act to reduce the impact of Brexit on UK businesses.”
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