RSA INSURANCE GROUP The impact on the UK economy could be significant, given that the businesses that expect their revenues to shrink have a collective turnover of approximately £252bn.
Revenues are likely to take a hit due to an expected slowdown in consumer spending, while increasing costs are likely to be driven by the rising price of imported goods, an increase in business rates, auto-enrolment and the apprenticeship levy.
Additionally, around 2.1 million (39%) of the UK's 5.4 million SMEs see rising business costs as a top three risk to their business.
The findings come at a time when more than half (51%) of SMEs think that the government is not doing enough to help them grow.
This expected deterioration of business conditions is likely to be exacerbated by the increase in business rates in April. The average shop will see business rates rise by 8.4 per cent while those in central London could see increases of as much as 100 per cent.
RSA Insurance Group plc published this content on 24 February 2017 and is solely responsible for the information contained herein.
Distributed by Public, unedited and unaltered, on 27 February 2017 11:52:19 UTC.
Original documenthttps://www.rsagroup.com/news/press-releases/2017/rsas-economic-imperative-report-challenges-facing-the-uks-smes-revealed/
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