Overall, the percentage in London saying they are fighting barriers to growth has hit a five year high of 88%, up from 84% last year, and just 77% in 2024 when Keir Starmer led Labour to victory in the general election.
As well as Brexit, issues named by the companies polled include general macroeconomic uncertainty – cited by 50% of those surveyed – followed by rising oil prices, a factor mentioned by 31% of respondents, and the “impact on higher running costs,” named by 27%.
Not surprisingly, firms in the transport and distribution sector were most likely to say that rising energy and fuel prices were holding back growth with 58% citing this as a barrier.
Jo Morris, head of insight at Novuna Business Finance said: “Our findings show how quickly and how deeply London-based small businesses have felt the impact of rising energy and fuel prices in the UK. Businesses that rely on heavy equipment and transport seem to have felt the impact most significantly.
“Whilst the vast majority of enterprises started the year working on new initiatives to secure growth, this is counter-balanced by the very high number that are trying to overcome obstacles and external market pressures.
“Our tracking suggests that if we want to see a major upturn in UK small business growth forecasts for the summer and autumn months, it is the barriers that need to be tackled first – and urgently.
“Today’s figures on barriers to growth give us an early indication of what to expect from actual growth forecasts for the months ahead.”
