Natalie Ward, Managing Director at clothing and sportswear retailer, Latched: “I have no confidence in the economy right now and interest rates rising feels like another blow. My sales have taken a huge hit since February. With rising costs comes consumer caution. People are spending less just as small businesses are having to spend more across the board and it’s a scary time right now. I am personally in the process of applying for a part-time job to ensure I can afford to pay my own bills because my forecasts show there isn’t going to be enough money in the business to pay myself in the months ahead. The government is trying to claw back the billions spent on the pandemic and I understand that, but it’s going to be at the expense of small businesses and unfortunately I predict a huge surge in unemployment come the winter.”
Keith Budden, MD at Hampshire-based IT security firm, Ensurety: “The economy is rolling downhill towards recession and rate rises, which in theory will help curb inflation, could be coming too late. The Bank of England seems to be playing catch-up with inflation, and is now noticeably behind the curve. The Government needs to do a lot more to help the lower earners cope with rising rates and inflation, and they should impose a cost ceiling on energy costs for SMEs. It’s absolutely brutal out there.”
Maddy Alexander-Grout, CEO of the Southampton-based money-saving app, My VIP Rewards: “This is the worst state the economy has been in for decades. I’m a money saving specialist and even I am struggling to make ends meet. The Government needs to wake up and act quickly because it’s massively underestimating the scale of the crisis we’re in. Interest rates need to rise to contain inflation, but it’s another massive blow to households and businesses around the UK.”
Paul Young, co-owner at Carmarthen-based wellbeing website, Spiffy – The Happiness Shop: “This isn’t just a financial crisis, this is a mental health crisis, too. A lack of financial security can be devastating to your mental wellbeing, and rising interest rates, coupled with skyrocketing costs, are causing a lot of stress. Our online store is dedicated to mental health resources and April’s sales are down by 85% compared to last year, because people are having to prioritise survival over their wellbeing. We’re a living wage employer and every one in our team is living month-to-month and cutting back on tiny luxuries just to get by. We’ve had to close our bricks and mortar show as the town has been decimated by COVID closures. There needs to be change on a political level, because I dread to think what the next few months hold for us all.”
Ed Rimmer, CEO of Bath-based SME finance provider, Time Finance: “Many UK businesses will be hit even harder by a further increase in interest rates. On top of soaring costs, inflation and supply chain issues, the outlook is extremely worrying if many don’t receive the support they so urgently need soon. Our own research indicates that many business owners are increasing their own costs as a result, some by up to 30%. 1 in 10 businesses we spoke to said they may have to reduce personnel, scale back on investments and pull out of certain markets as a result. This only serves to amplify the domino effect this has on our economic recovery and cost of living crisis, if measures aren’t put in place soon. The Government must do more. Waiting until the Autumn Budget later this year will only serve to stunt economic growth further. Supporting businesses now is an absolute necessity.”
