Economic reports and data

Small business confidence falls, what it means for Bromley.

The latest Q4 2025 Small Business Index from the Federation of Small Businesses makes difficult reading.

Confidence has fallen to –70.6, the lowest level since the start of the pandemic. More than half of small firms report falling revenues. Over a third expect to close, downsize or sell within the year.

These aren’t abstract national figures. They reflect the pressures facing high streets, industrial estates and creative workspaces across the London Borough of Bromley – from the Town Centre to the Cray Valley Business Corridor, from Penge to Biggin Hill.

Why this matters locally

Bromley has one of the strongest SME ecosystems in outer London. We are home to global names like Splash Damage and growing innovators like VoltShare — but the vast majority of businesses here are small and medium-sized firms.

They power:

• Our town centres

• The Cray industrial economy

• Our professional services sector

• Our growing creative and digital cluster

When small businesses pull back on hiring (26% reduced staff last quarter nationally), it directly impacts local employment, supply chains and commercial property demand.

What’s driving the pressure?

Tax changes are now the dominant cost driver. Adjustments to National Insurance, business rates and dividend tax — alongside frozen thresholds — are compressing margins just as:

• National Living Wage rises

• Energy standing charges increase

• Consumer demand softens

For Bromley businesses operating in retail, hospitality, logistics, and professional services, this combination creates a serious headwind.

The Opportunity for Bromley

This is precisely why Opportunity Bromley exists.

In a fragile national climate, local confidence matters more than ever. That means:

• A visible inward investment pipeline

• Active business retention and account management

• Strong landlord–agent coordination

• Expanding the High Growth Network

• Delivering events that connect capital to opportunity

While national policy sets the tone, local ecosystems shape outcomes.

Bromley cannot control tax policy — but we can control how effectively we support our businesses, promote our growth hubs, and connect firms to opportunity.

A Call for Growth-Focused Policy

Nationally, the upcoming Spring Forecast must send a clear signal: Growth has to become affordable again.

Small businesses are not a niche interest group — they are the backbone of the UK economy. If confidence continues to fall, the impact will be felt in every borough.

For Bromley, the task is twofold:

1. Advocate for pro-growth policy.

2. Double down locally on collaboration, connectivity and investment readiness.