LONDON, July 17 (Xinhua) -- The proportion of Britain's small firms expecting to grow over the next year fell to its lowest level in more than a decade in the second quarter of 2026 (Q2), according to a survey released Friday by the Federation of Small Businesses (FSB).
Only 18 percent of small firms expected to grow over the next year, the lowest level since the FSB's Small Business Index began in late 2014. Meanwhile, 32 percent anticipated shrinking, selling their businesses or closing altogether during the same period.
According to the survey, the domestic economy, the tax burden and labor costs were the leading factors expected to hold back business growth.
Revenue performance also remained subdued in Q2, with just 22 percent of small firms reporting higher revenues, while more than half reported declines.
Cost pressures intensified during the quarter, with 30 percent of firms reporting that their costs had risen by more than 10 percent, up from 26 percent in Q1.
Taxation was the most frequently cited driver of rising costs, followed by fuel, utilities and labor, the survey showed.
