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The economy and you - June 23

ended 13. June 2023

Next Wednesday morning, the latest GDP data is being published, which is a snapshot of the UK economy. In short, the economy and how it's faring will be in the news all day. Ahead of this, we're keen to get your responses to any or all of the questions below, which we'll issue to your local and the national media on Wednesday morning when the data drops.

  • How is your business or charity faring at the moment? Are things better or worse than this time last year?
  • What are the main challenges you're facing right now, e.g. high inflation, rising interest rates, raw material costs, donations dropping due to the cost of living crisis, finding staff, etc?
  • Do you feel the Government is doing enough to support small businesses and charities at present? 
  • Are worries about your business or charity, or personal finances, affecting your mental health?
  • Do you believe things will improve or deteriorate in the second half of the year?

Any other thoughts, jot them down. We'll do our level best to get them published. Please also let us know if you are available for radio/TV interviews.

8 responses from the Newspage community

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Jonah Werth
Co-Founder at We Are Blend
It was reported recently that a third of hospitality firms are expected to fold as inflation kills the restaurant sector. Post-Brexit, the hospitality industry is facing a staffing crisis like no other and there is huge pressure on the industry to invest in growing young British talent and explore immigration opportunities to plug the gap. My start-up Blend is on a mission to onboard both students and foreign workers into hospitality more efficiently, through video-first gamification. There is a huge job to be done to onboard, train and grow the future of this great industry. Our customers need a workforce fit and ready for the job, and with the cost of eating out expected to rise even further, the demand for exceptional customer service is more than ever.
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Gillian Ferguson
Owner at Twisted Empire Bakes
I’ve just closed my business down so the fact that the economy grew in April means nothing to me. The cost of raw materials and energy were to blame, as they decimated my margins. I could have kept struggling on but a combination of lockdowns, soaring inflation and incompetence in Government made things too much of a struggle over the past few years and I decided it’s no longer worth it.
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Louise Holme
Business Owner at HolmeStores
As an owner of a hospitality business, we've batted ongoing economic challenges like no other since 2020. Inflation and staff shortages have been consistent issues over the past 18months. However, with sales dwindling over the past couple of months, it seems the anticipated positive effect of an extra Bank Holiday actually resulted in lower spend in May than usual, and the reality of relentless interest rate rises means a hoped-for jump in sales in this first half of June has also not materialised. It's a shame the government hasn't yet worken up to the economic challenges facing hospitality in particular, as I watch friends and peers close down their establishments week after week. A simple adjustment to VAT has been a quick go-to response in previous recessions and has had an instant effect. It may be that the government is waiting for a recession to bite before introducing a VAT reduction but for too many it is already too late.
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Legend
Lucy Scott
Director at Lil's Parlour CIC
After 12 months of being 'the first pay-as-you-can' bakery in the UK, amazingly the initiative no one thought would work is still here. That does not mean currently it is not a monumental struggle. Our core costs have increased 75% since this time last year and it is becoming more of an effort to stand up every day to make this work. Our average per item payment has declined by 40% but we still have people that support us by showing up, which is important. I constantly have to make tough decisions. I have streamlined our offering right down, which feels sad, but staying open for those who rely on us is more important. Our utility and ingredients bills are a constant headache but thanks to a new, supportive landlord we are working on cutting our bills by implementing a new greener energy policy. Our core income has changed from the bakery itself to running Local Authority-funded workshops. It's hard work but this initiative runs in my blood. It's about constantly innovating.
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John Lamerton
Small Business Author at Big Ideas... for Small Businesses
The economy may have grown slightly in April but it won't have felt like that for small businesses, for whom the conditions they are operating in remain brutal. Small businesses are really struggling and it seems no one's coming to save them. Still recovering from multiple Covid shutdowns, and repaying their Bounce Back Loans for years to come, business owners have been dealt blow after blow. Inflation has eroded their already thin margins, which has a triple-whammy effect on small firms: suppliers have hiked prices, staff have all demanded inflation-proof pay rises while customers are all tightening their belts in response to the cost-of-living crisis. The Government's response has been to tax small businesses at a higher rate than ever before. It seems that if a small business fails, that's the business owner's problem. But if a big business fails, that's the taxpayer's problem.
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Clive Read
Owner at Goldmanread
1) As a Mortgage Broker Business has picked up this last 6 months after falling of a cliff after the Truss/Kwarten Budget.
2) There is uncertainty ahead however due to rising inflation and interest rates. Consumers are struggling with new affordability challenges.
3) As far as I can see the government is not doing anything specifically to assist my business. Quite the opposite when it comes to buy to let, where new legislation is making it increasingly tough got landlords.
4) Being a small business owner is always challenging and stressful. We need to write our own pay cheque every month, which can be a challenge.
5) The second half of this year will be tougher as interest rates remain high and inflation looks to continue to increase.
I'm available for Radio.
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Shirley Leader
Owner at Velvet & Rose
Our boutique is just ahead of sales from a year ago. At times, it does not feel like this. Some items sell quite easily, others you have to put in the work. Customers are certainly shopping around. Wholesale prices are going up all of the time and we have to decide on whether to pass on, absorb or find another brand. The pressure is intense and it can be quite stressful having all of this at the back of your mind all of the time. Customers are not aware of the thought process a small business has to work through. Meanwhile, the Government is making it hard to access funds. We recently got told that we had to create an industry association with a bank account to access any money. This takes time to set up and the concern is that many more businesses will close in the meantime. The next quarter will be more of a challenge as customers are not traveling so much but we are hoping that we will have a strong finish to the year as we continue to adapt and be agile.
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Cliff L'Aimable
Managing Director at Building Control Surveyors
Our customers appear to be staying put and re-developing buildings they currently occupy, instead of moving house or constructing new buildings. New build housing commencements have slowed down, yet interestingly our overall business income has increased when compared to the same two quarters of last year. Despite being a volatile barometer, construction industry performance is often cited when our nation's economic growth or depression is to be reckoned. We are riding out the economic shockwaves caused by rising raw material costs, coupled with the continued skills shortage in the industry, especially post-Brexit. Difficulties in finding suitable staff have reached critical levels, especially with new competency requirements soon to be applied to our existing employees, causing many older professionals to reconsider their current employment. Many are opting to either retire early or seek alternative employment in other sectors.