Financial pressures mounting on small businesses

Date: 30th October 2008

The financial pressures which have been mounting on small firms could force many out of business, according to Royal and Sun Alliance (RSA).

Research from the insurer shows that since the onset of the credit crunch, a tenth of smaller businesses have been forced into a position where they can no longer operate.

Over the past year, small firms have been hit by taxation increases and rising overdraft charges, which is likely to have seen many turning to their accountants for advice.

Small business director at the RSA, Mark Skinner, commented: "SMEs (small to medium enterprises) are the backbone of the UK economy and are facing tremendous pressures in these uncertain economic times."

He added that increasing costs, a decline in consumer confidence and tightening of lending criteria had all contributed to the difficulties the sector was facing.

Another pressing matter for business start-ups is tomorrow's (October 31st) self-assessment tax return deadline.