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The Guardian - UK
The Guardian - UK
Business
Richard Partington Economics correspondent

Cost of living squeeze ‘is holding back’ UK small businesses

workers on macines at a manufacturing plant wearing goggles, ear protecters and blue overalls
The FSB survey found a record 92% of companies said costs were higher in the first quarter compared with the same period in 2022. Photograph: Rui Vieira/PA

Small businesses across Britain are warning that the cost of living squeeze is holding back economic growth, after two in five company bosses reported a drop in sales at the start of the year.

The Federation of Small Businesses said that although business confidence was rising among bosses before the summer, soaring costs and weakness in consumer demand were still weighing on activity.

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