Back to today’s briefing

Story perspectives

30% of UK Small Firms Face Downsizing or Closure

10/31/2025

26 3

Summary

Story summary

The Federation of Small Businesses (FSB) reports 30% of UK small firms expect to downsize or close within a year.
Confidence dropped to -58 points as rising taxes and shrinking revenues fuel pessimism.
The survey shows 55% report lower incomes, 18% anticipate growth, and 6% foresee closure.
The FSB urges Chancellor Rachel Reeves to take immediate action in the upcoming Budget to alleviate tax burdens and support entrepreneurship.

1 of 1

Story summary

The Federation of Small Businesses (FSB) reports 30% of UK small firms expect to downsize or close within a year.
Confidence dropped to -58 points as rising taxes and shrinking revenues fuel pessimism.
The survey shows 55% report lower incomes, 18% anticipate growth, and 6% foresee closure.
The FSB urges Chancellor Rachel Reeves to take immediate action in the upcoming Budget to alleviate tax burdens and support entrepreneurship.