Gains in business confidence 'at risk'

08 Apr 2026

Data published by the Federation of Small Businesses (FSB) has revealed that confidence amongst small firms rose slightly in the first three months of 2026, but could fall without government intervention.

The FSB's Small Business Index recorded a confidence reading of -53 in the first quarter of this year, up 18 points from the historic low of -71 registered in the last quarter of 2025.

The business group stated that confidence is 'crawling back', but fresh cost pressures could 'drag it straight back down'. 

'Sentiment among the community remains low, driven by mounting costs stemming from policy decisions made by ministers,' said Tina McKenzie, Policy Chair at the FSB.

'The outlook for small business growth is bleak, and you can't get growth in the economy relying just on the UK's large corporate firms who are feeling relieved after the last Budget.

'Small businesses need a cushion to absorb the costs kicking in over the course of the year, because without changes to business rates, help with energy costs, an SSP rebate and a delay in dividend tax increases, it leaves them in a very vulnerable place.'