Small businesses running costs fall further

Date: 16th June 2009

The cost of running a small business in the UK has fallen to -1.4 per cent deflation over the first quarter of 2009, according to MORE TH>N BUSINESS.

The figures, part of the latest Business Inflation Guide (BIG) from the insurance company, mark the second consecutive quarter of deflation in the small business sector.

Mike Bowman, head of MORE TH>N BUSINESS, said that while the figures were excellent news for the small business sector, he warned that business owners should remain cautious about the still uncertain future.

He commented: "While it is [now] cheaper to run a small business, the [economy's] volatility has made it very difficult to plan and invest, placing tremendous pressure on cash flows and managing stock and staffing levels."

"There are a lot of small businesses that have never experienced anything like this before."

The BIG measures a basket of 20 of the most important expenditure items for small businesses. It is a quarterly index.