Hundreds of thousands of small businesses may fold this year – wiping £12bn from economy, report says

Published

2 years ago

March 6, 2023

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Hundreds of thousands of the UK’s smallest businesses risk going under this year as costs keep rising, a report has revealed.

The owners of nearly one in eight microbusinesses, defined as employing fewer than 10 people, fear they will have to fold, equating to 630,000 businesses.

Catherine Sweet sells art for a living – both her own and that of other artists – via her website BobCat Gallery and at exhibitions she puts on.

But she says “a massive decline in consumer spending” coupled with rising living costs is a disaster for businesses.

“I know that my business could grow fivefold If I had a physical space, but every negotiation I have entered into with the landlord has come to nothing because I do not have the funds right now.

“Affordable rent subsidies for retail premises would be a huge boon, because for businesses like mine, having physical premises would be a game changer, but it’s completely out of our reach,” she said.

And Catherine is not alone.

The annual Venture Forward study by website builder GoDaddy found that only a fifth of microbusiness owners think the government is doing enough.

More than three quarters also described the cost of living crisis as the greatest challenge they’ve ever faced, with the price of energy the biggest single concern.

According to Andrew Gradon, GoDaddy’s UK manager, microbusinesses represent 96% of all businesses within the country’s private sector.

“They are the lifeblood of businesses in the UK and it’s them that are on the frontline very much feeling the direct impact of the cost of living crisis,” he said.

“Around 42% said that they wanted support with tax incentives but also looking more broadly to business support – so looking at technical assistance for business development as well as support for digital strategy.”

The study estimates that if the 12% of microbusinesses under threat went under, it would wipe £12bn from the economy.

The data also shows that the cost of living crisis is having a disproportionate impact on microbusinesses owned by underrepresented entrepreneurs.

A total of 85% of black entrepreneurs described it as the worst time they can remember, as did 84% of those who are Asian compared with 75% of white entrepreneurs.

A government spokesperson told Sky News: “We recognise that companies are struggling with energy bills which is why the government is providing businesses with billions of pounds of support.

“This support means some will be paying around half of predicted wholesale energy costs this winter. We’ve pledged further energy support from April onwards.”

UK

Boy, 14, stabbed to death on bus in Woolwich, southeast London

Published

4 hours ago

January 7, 2025

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Boy, 14, stabbed to death on bus in Woolwich, southeast London

A 14-year-old boy has been stabbed to death on a bus in Woolwich, in southeast London.

Police were called around 2.30pm to reports of a stabbing on a bus on Woolwich Church Road near the junction with the A205 South Circular Road.

A boy who police said had received stab wounds was treated by paramedics, but he died at the scene shortly after they arrived.

Officers have launched an investigation into the incident.

No arrests have been made so far but police are appealing for witnesses of the incident on the 472 bus.

A cordon and road closures were in place as of shortly before 5pm.

UK

Liverpool hospital declares critical incident over ‘exceptionally high’ demand on A&E amid rising flu cases

Published

9 hours ago

January 7, 2025

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Liverpool hospital declares critical incident over 'exceptionally high' demand on A&E amid rising flu cases

The Royal Liverpool University Hospital has declared a critical incident due to “exceptionally high” demand on A&E and patients being admitted to wards.

The hospital said there had been a spike in people with flu and respiratory illnesses going to emergency departments in recent weeks.

The number of people in England’s hospital with flu quadrupled in the last month, according to NHS data.

A spokesperson for the hospital said it had a “comprehensive plan in place” and was “taking all the necessary actions to manage the challenging circumstances”.

“We are working with partner organisations to ensure those that are medically fit can leave hospital safely and at the earliest opportunity,” they added.

The hospital warned some people would experience delays as it prioritises the sickest patients.

People whose case isn’t an emergency are being asked to see their GP, pharmacy or walk-in centre – or call the 111 service for advice.

The Royal Liverpool University Hospital is in the city centre and is the biggest hospital in Merseyside and Cheshire.

Declaring a critical incident can happen when a hospital is experiencing exceptional demand, or sometimes if there is a serious problem with staffing levels.

It indicates it can’t function as normal and allows it to take extra measures to protect patients, such as prioritising the most unwell people and getting support from other agencies.

It could last hours, a few days, or weeks if necessary.

A critical incident was also declared on Friday by the NHS Cornwall and Isles of Scilly Integrated Care Board.

It said it had seen almost four times as many inpatients compared with last year and urged people with flu to avoid going to A&E.

There have been warnings this winter of a so-called “quad-demic”– with flu, vomiting bug norovirus, COVID and RSV circulating at the same time.

The NHS provides vaccinations against three of the four; flu, COVID-19 and RSV (a common cause of chest infection in babies).

UK

Zendaya and Tom Holland engagement rumours swirl after Golden Globes

Published

10 hours ago

January 7, 2025

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Zendaya and Tom Holland engagement rumours swirl after Golden Globes

Zendaya and Tom Holland are rumoured to be engaged after the 28-year-old actress appeared at the Golden Globes wearing a massive diamond ring on her left ring finger.

They met after working together on 2017’s Spider-Man: Homecoming and confirmed their relationship in 2021.

Sky News has contacted representatives for Zendaya and Holland for comment.

Zendaya chatted to journalists on the Globes red carpet, where she was nominated for best actress in a musical or comedy for her role in the romantic sports drama Challengers.

Despite being pipped to the prize by Demi Moore, who won for her role in body horror The Substance, there was plenty of buzz around Zendaya’s large diamond ring, which was clearly visible throughout the show.

A Los Angeles Times reporter appeared to ask Zendaya about it, holding up her own engagement ring and pointing to it. Zendaya responded by showing her left-hand ring.

The reporter then asked if the actor was engaged and “she kept showing her ring, smiled coyly and shrugged her shoulders mysteriously”.

Holland, who is also 28, wasn’t at Sunday’s Globes.

Zendaya wore an orange Louis Vuitton ball gown, and diamond jewellery from Bulgari – for which she’s an ambassador – on the Globes red carpet.

But while the Dune star’s other jewellery items were listed in a press release, there was no mention of the ring on her left finger.

Zendaya, who rose to fame after her breakout role in Disney sitcom Shake It Up, became a household star after starring in Euphoria.

Tom Holland, who is the son of British actor/comedian Dominic Holland, won a role in Billy Elliot The Musical as a child, and has gone on to achieve global fame playing Spider-Man in six Marvel Cinematic Universe movies.