London small businesses in London are the most worried in the UK about the current outbreak of intense financial and economic instability, according to new research out this week .
Preliminary findings from the latest quarterly edition of finance services group Novuna’s Business Barometer study reveal that more than three quarters of small business owners in the capital expressed concern.
That is a higher percentage than in any other region in the UK
Around a fifth worry about how US tariffs will directly impact their business and supply chain.
The research was carried out just 24 hours after Donald Trump announced the 10% tariffs on imports of goods from the UK.
Reflecting the international outlook of many businesses in, London, many small businesses are also most fearful of how larger US tariffs on the EU or on Canada, Mexico China and Japan would also have an adverse ripple-effect on their supply chains.
Beyond tariffs, 48% of London small businesses expressed concern over the risk that current international instability could result in further UK tax rises in the coming months if economic growth is badly hit.
A further 38% of London business owners were concerned about how current geo-political events would weaken already fragile consumer confidence, resulting in customers spending less money in the months ahead.
However, the percentage of London small businesses forecasting growth for the three months to June has recovered to 48%, following a sharp dip to 39% in the first quarter.
That is still well below the 57% recorded in the last quarter of last year but far better than the 29% average for the UK as a whole.
Joanna Morris, head of insight at Mitsubishi HC Capital owned Novuna Business Finance said: “Whilst London small business outlook in the short-term appears to be positive, the seriousness of business owner concerns over tariffs, the prospect of tax rises later this year and weakening consumer confidence are major causes of concern for the longer-term.
“London is very much the weathervane for small business outlook in the UK, because growth outlook has consistently been stronger in the capital than anywhere else in the UK. So when London small businesses worry, we should all sit up and listen.”
