As reported by City AM, more small business owners expect their firm will shrink, shut or be bought over next year than predict a year of growth 

A new survey from the Federation of Small Businesses (FSB) reveals that 27% of business leaders believe their firm will either downsize, cease trading, or be taken over within the next 12 months. In contrast, only 25% are optimistic about expanding during that time. This marks the first instance since the FSB began its quarterly confidence survey in 2010 that pessimism has overtaken optimism among small business owners.

Tina McKenzie, Policy Chair at the Federation of Small Businesses (FSB), warned that the latest survey results signal “a significant threat to the UK economy” and increase the urgency for the government to deliver a meaningful Small Business Strategy.

Tina McKenzie also raised concerns about looming employment costs tied to the forthcoming Employment Rights Bill, calling it “a major deterrent to small businesses looking to hire.”

The bill, currently under review in the House of Lords, has drawn strong criticism from small business owners, particularly due to some of its more sweeping provisions. A key point of contention is the proposed expansion of employee rights from day one, including immediate protection against unfair dismissal — a change the FSB says has left many of its members “deeply concerned.”