Rather than rebounding in 2022, economic conditions in the United Kingdom have deteriorated. Forecasts for growth in 2022 and the year after have been cut dramatically.

The reasons for this are well documented. Take your pick from soaring energy costs, supply chain disruptions, the effect of Covid-19, and post-Brexit difficulties. All of these have led to rising uncertainty. Nor is the UK unique; all G7 economies have had their growth forecasts cut.

Such a strained economic environment is challenging for everyone. But prospects for small and medium-sized enterprises (SMEs) are particularly bleak.

These are the builders, florists, design companies, coffee shops, and countless other businesses that provide vital employment, services, and tax revenue to the places where we live. There were 5.5 million SMEs in the UK at the start of 2021, accounting for 99.9 percent of all businesses, 60 percent of UK employment, and about 50 percent of private-sector turnover.

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