UK Small-Business Confidence Slumps Amid Autumn Budget Tax Fears

Small businesses across the UK, including Scotland and Wales, are experiencing a sharp decline in confidence due to fears of upcoming tax increases in the Autumn Budget. Surveys indicate that a record number of small firms expect to shrink, with concerns particularly focused on rises in National Insurance, income tax, VAT, and fuel duties. Profit reductions and increased running costs—especially labor, utility bills, and core materials—are causing many to consider downsizing, selling, or closing. Business owners express worries that further tax hikes will exacerbate financial pressures and hinder growth, with some already struggling to absorb past increases and rising operating expenses. Calls from industry leaders urge the government to take bold action to ease tax burdens and support entrepreneurship to stabilize the economy and foster future growth. Personal stories highlight how these economic challenges are impacting daily operations, with some owners working longer hours to manage costs amid uncertainty about relief measures such as business rate relief.