As the US tariffs on UK goods kick in, we've been on BBC News talking about the likely impact on UK small businesses - at a time when they're also facing mounting business costs at home.
Our Policy Chair Tina McKenzie MBE told BBC Breakfast that for the 60% of UK small exporters who have the US as a key market it's not simply a case of pivoting immediately to other markets 👇
Not at all. And actually small businesses in in the UK, if we can get them to export more productivity goes up, jobs go up, profits go up, taxes go up. It's great for this country. And but I think that to expect them to be able to pivot really quickly out of the US market after taking the time to go, you know, when you set up a new market, they have to set up a bank account. They whether they're in that country or not, there are certain rules, certain tax regimes they need to understand. So it's very difficult for them to set up in a new. Market. So just to pivot out of there and say, OK, I'll tell you what, I'll just go and do Germany. What's really interesting is when you look at who our top kind of partners are, the US is #1 Germany's number 2, which is a good thing. Ireland, our next door neighbors, it's #3 you know #4 is the Netherlands. So we do have lots of opportunity to grow those near shore markets as well. But as you say, it's not really as simple as saying I'm just picking up a straight away no. And the other point I know you make is most businesses are working under 10% margin, so that 10%. Kind of barrier talking about it's gonna be really, really tough. Yeah. But also combine that with the other challenges businesses in this country are facing at the moment, increased National Insurance contributions, rise in natural living wage and so on. It does feel like a bit of a perfect storm for small businesses. Well, we just had our survey results in and this is just the the week before the tariffs were announced and what the small businesses of the UK and the medium businesses are saying is that the toughest thing they're finding confidence is really low. I think we've recorded confidence at its lowest. Outside a one point in COVID, which is worrying. And what they were saying was that their biggest problem, number one was the the utility bills, the cost of utility bills #2 labour costs and #3 the tax burden that normally doesn't get right up there. And they were saying that the business rate support has gone down. You know, nation insurance up, as you said, nice and minimum wage up. And I think they feel a little bit battered now. This has been building over a lot. This isn't just. Kind of, I know the chancellor's getting a lot of the Flack for that, but actually this has been building over the last number of years and they just feel like it's more on them. And I guess my plea to the government is don't be coming out in the spending review in June and thinking you can layer anymore on to them.
