Government policies heap cost pressures on small firms
The increase in small business costs directly resulting from Government policy decisions has significantly outpaced inflation in recent years, according to the Federation of Small Businesses (FSB)’s new Impact of Government Policy Index (IGPI). the report finds that a wide range of Government taxes, reliefs and employer obligations have caused outgoings for smaller firms to rise by an average of 12.5 per cent in the five years to 2016. That compares to a cumulative Consumer Prices Index (CPI) figure of 7.7 per cent over the same period.
Mike Cherry, FSB National Chairman, said: “Policy should always be evidence-based. This new independent research sets out just how the costs of many historic and individual policy decisions have mounted up, heaping large and sustained pressures on small firms at a rate that’s significantly outstripped CPI"
This is being reflected across our client base, with regulatory liabilities increasing. Knowing that they can calculate their cashflow has been a help to our clients as they have been able to factor in these liabilities to their forecasts and are able to budget accordingly.
MD of Regency Factors, Maurice Craft "Cost increases are never welcome, but they spark efficiency savings in the long run. Business owners are forced to examine their costs and budgets and take an opportunity to rethink their financing arrangements"
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