FSB reacts to GDP growth of 0.5%

Commenting on today’s announcement that UK GDP grew by 0.5% in the third quarter of 2015, John Allan, National Chairman of the Federation of Small Businesses, said: “Business growth remains positive, although the slight slowdown is reflected in recent research showing confidence among FSB members is cooling. The cautious tone is being driven in part by uncertainty around the stability of the global economy. Closer to home, many small businesses are wondering how they will absorb changes to tax treatment on dividends, increases in some of their staff wages through the National Living Wage and the cost of pensions auto-enrolment on top of already high business rates bills.

“In this climate of moderate growth, the Bank of England has provided some certainty with interest rates remaining stable for an extended period at 0.5%. Many small businesses will be heartened by signals from The Bank of England governor Mark Carney suggesting rates will continue along this course for the remainder of the year.”

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