Research carried out by the Federation of Small Businesses (FSB) has shown that confidence amongst small firms hit a post-Covid low in the final quarter of 2024.

The FSB’s Small Business Index (SBI) for quarter four of 2024 revealed that confidence levels fell to -64.5 points from -24.4 points in the previous quarter.

Tina McKenzie, Policy Chair at the FSB, said: The fourth quarter blues reported by small firms underline how urgently the government’s growth push is needed.

‘Small firms are understandably nervous about their prospects as 2025 gets underway.

‘The upcoming Employment Rights Bill is a major source of stress for small firms, with nine in ten business owners saying they are concerned about its introduction, and this is undoubtedly a major cause of the very subdued confidence levels seen in our research.’

A separate survey conducted by the Chartered Institute of Personnel and Development (CIPD) revealed that companies are planning to cut jobs or recruit fewer people ahead of the rise in employers’ National Insurance contributions (NICs) in April.

Firms polled by the CIPD also said they plan to increase prices to cover rising employment costs.