London firms stung by business costs

New study shows

Seven in 10 businesses have seen an overall increase in the cost of running their business operations in the past quarter compared to nine per cent who have seen a decrease, according to the FSB.

This has remained steady from the last quarter. The main causes of these business costs increases include Labour costs, the exchange rate, rent, utility costs and inputs into the business.

The London Small Business Index (LSBI), which measures confidence amongst businesses, has a reading of +25 which is consistent from the last quarter.  This time last year the reading stood at -10.

The Federation of Small Businesses (FSB) is urging the Government to make Councils distribute the £300 million Business Rates Discretionary Business Rate Fund available sooner rather than later  – as London will receive around £125millon.

Sue Terpilowski OBE, London Policy Chair, said: “Many small firms are still reeling from the business rates revaluation that took effect in April. The £300 million hardship fund announced at the Spring Budget to help those worst effected offered a glimmer of hope, but is yet to materialise. With the election out of the way, there’s absolutely no excuse for local authority debt collectors chasing small businesses for incorrect, over-inflated bills without the emergency relief applied. The Communities Secretary needs to make distribution of this fund his top priority.”