Thousands of small businesses could be at risk of closure due to declining revenues and rising tax bills, with a Federation of Small Businesses (FSB) survey of nearly 1,500 small business owners and sole traders showing that 30% expect to either contract, downsize or collapse over the coming year. The poll saw 55% of companies say that their income fell over the past three months, with a £25bn tax raid having an impact. This came after changes in last year's Budget saw the main rate of employer National Insurance contributions climb from 13.8% to 15% and the earnings threshold reduced to £5,000 from £9,100. Tina McKenzie, policy chair at the FSB, said: "Millions of small businesses shrinking, closing or selling up instead of growing means a vicious cycle of a lower tax take, higher unemployment, and greater demands on the state all exacerbating each other in a downward spiral."
