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Half of UK small companies say rising costs will hit growth

Businesses grapple with higher bills and taxes but survey finds positive confidence overall

Almost half of small British companies have warned that the rising costs of doing business in the UK will stall growth this year, according to a survey carried out by the Federation of Small Businesses.

The group, which represents the interests of Britain’s almost 5.5mn small companies, said operating costs had risen for almost nine in 10 businesses compared with this time last year.

More than half blamed rising fuel and utility costs, while more than a quarter said higher taxes had started to bite following the increase in national insurance rates and the issuing of new business rates bills this month.

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