On Thursday the ONS revealed that UK gross domestic product (GDP) is estimated to have fallen by 0.3% in Quarter 4 (Oct to Dec) 2023, following an unrevised fall of 0.1% in the previous quarter, putting the UK in a technical recession.
Newspage asked a selection of business and charity owners from all sectors and areas of the UK for their views on the economy at present.
One Petersfield-based retailer has closed her boutique fashion business, a Bristol-based charity owner is worried about “scare funding” while one business owner said simply: “Our once famous ‘nation of shopkeepers’ is in danger of becoming a ‘nation of ghost towns, chain stores and closing-down-sales.’
Will the last small business owner in the country please turn off the lights?”
John Lamerton, director at Big Ideas… for Small Businesses said, “More small businesses closed their doors in 2023 than at any point since the Global Financial Crisis so the fact the UK is now in recession will surprise few. 30,199 UK businesses took insolvency action last year, a 52% increase since 2021.
“Small businesses are not struggling, they’re dying. And neither the Bank of England nor the government seem willing or able to do anything about it. Our once famous ‘nation of shopkeepers’ is in danger of becoming a ‘nation of ghost towns, chain stores and closing-down-sales’. Will the last small business owner in the country please turn off the lights?”
Shirley Leader, Owner at Petersfield-based fashion retailer, Velvet & Rose said, “The fact the economy is in recession is no surprise. The so-called ‘Golden Quarter’ for retail did not deliver.
“Sales in this quarter were around 25% down versus 2022. As a boutique owner, we rely on this quarter to put us in a strong position for the following year. As we had such a downturn, we have made the sad decision to close our business. Since we announced our closure, we have had a better January versus December and never had so many people pop by. We are still facing challenges, though.
“Our energy bill is at an all-time high and with the impending increase in the minimum wage we are pleased that we have made the decision to close. Other boutique owners have since shared that they face closure, too, and are encouraging customers in by going into big sales.
“We believe this year is going to be another tricky one for retailers so we hope the Government can help reduce energy bills, decrease car parking charges, implement online sales tax for large businesses and more.”
Jennie Prewett, Founder and Trustee at Bristol-based charity, Incredible Kids said, “Small charities like ours are weaving our way through extremely challenging times, as this latest GDP data shows.
“The funding landscape is becoming increasingly challenging, with many regular supporters closing their doors, and others facing an overwhelming number of applications. Despite these obstacles, our commitment to supporting disabled children in Bristol remains unwavering.
“One family shared with us the transformative impact our play sessions had on their child’s development, showing the vital role our charity plays in the community. Jill told us: “The kids want to attend every week, they feel confident, safe and have even made friends”. While scarce funding is a significant worry, stories like these make us even more determined to continue making a positive difference.”
Stephen Perkins, Managing Director at Norwich-based Yellow Brick Mortgages said, “Whilst, for our business, the end of 2023 was better than anticipated and so far 2024 has started strongly, this is in contrast to the UK economy, which is being choked by a lack of growth and the high costs of running a business.
“How two members of the MPC at the Bank of England voted for a rise in the base rate at the last meeting astounds me. The government needs to do more to support businesses particuarly in retail and leisure before there are only ghost towns left.”
