FSB calls for small business support and job creation following rise in unemployment

THE Federation of Small Business is calling for measures to support small businesses and create jobs following new Office for National Statistics (ONS) figures which show unemployment has risen to a 4 year high of 4.7%, declining overall numbers on payroll and slowing wage growth.

Prime Minister Sir Keir Starmer told the House of Commons liaison committee the fall in jobs was partly a result of people moving from economic inactivity to:- 'required to look for work.' However, FSB's own research paints another picture; suggesting the Government's goal of hitting 80% employment is in jeopardy as a result of its own employment policies.

FSB's latest Small Business Index found that twice as many small businesses shed staff in the 2nd ¼ of 2025 (20%) than increased their employee numbers (just 9%), with similar numbers predicted in the coming 3 months (19% and 8% respectively).

Further, for the 1st time in the index's 15 year history more small businesses expect to shrink or close over the next 12 months (27%) than expect to expand (25%).

Overall business confidence dropped to:- -44 points on the weighted index, down from:- -41 points in the 1st ¼ of 2025.

When asked what factors which will constrain their growth over the coming year, small business owners surveyed by FSB overwhelmingly pointed to the domestic economy (64%). The tax burden was second (39%), closely followed by labour costs (37%); both are likely largely a response to the recent hike in employer National Insurance contributions.

FSB Merseyside and Cheshire's Phil McCabe said:- "A 4 year high in unemployment is further evidence of what small businesses have been telling us for some time; making it more expensive and riskier to give someone a job will result in fewer jobs. Ramping up National Insurance, pushing through 28 new pieces of employment legislation and, on top of that, the threat of a hike in employer pension costs is not a recipe for job creation and economic growth. Innovative and ambitious small employers, who play a vital role in their communities and want to create good opportunities for people, are already struggling with sky-high business costs and a stagnant economy. The Government must start freeing small businesses to thrive and create employment in its upcoming Small Business Strategy. This means forging the right conditions for talented, inspirational people to start their own business by improving the most damaging aspects of the planned employment legislation, supporting small employers to make rises in statutory sick pay affordable, and tackling issues like late payments and the blanket imposition of personal guarantees on small business loans, both of which are enormous brakes on growth among small firms. In addition, with local authorities currently producing their 10 year local plans, it is essential that small business support is placed front and centre. This includes:- outlining how the Government's new Business Growth Service will work locally and committing to open up public procurement to more small firms, which would not only deliver social value in itself, but also add around £5 billion to the UK's economy; the same as what the Employment Rights Bill will cost small employers per year."

Other research conducted by ourselves at Southport Reporter has also seen a rise in businesses closing due to financial pressures on the self employed and freelance community, following the move onto Universal Credit, and the minimum income floor being set so that if the applicant meats the requirement, they do not get help and if they fail to meat it, they do not get help. This in effect has taken away a seftynet that Tax Credits gave them. It is also affecting those who have Bounce Back Loans and are some of the 3 million plus Excluded UK members, as many had to claim Tax Credits to keep going, but now hot by the income floor. Unlike the employees they employ, they get not support at all, even when sick, but have to pay off loans forced upon them over the Covid Lockdowns. If they sack employees, this would make them bankrupt and if they keep going, they will be forced into bankruptcy if they hit any problems. This again is leading to job losses and many more are soon to follow if our findings are correct. Yet, as of yet, we have had no feedback on this issue from any of the MP's within the Liverpool City Region!

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Olympian Beth Tweddle Kicks off Liverpool ONE's Sport Programme and Sport Grants Competition
Photograph © Liverpool ONE

LIVERPOOL ONE's free to enjoy summer sport programme launched in spectacular style as Olympic medallist Beth Tweddle MBE took to Chavasse Park to deliver an inspiring afternoon of gymnastics coaching; officially kick starting 6 weeks of sport sessions at Liverpool 1 for families across the Region.

Crowds gathered in Chavasse Park as Beth, alongside the Gymfinity Kids team, personally led a series of fun and engaging gymnastics demonstrations for children aged 4 and above. Beth also hosted a Q&A session where children heard 1st hand about her Olympic journey, picked up tips for budding gymnasts, and had the chance to take photos with her London 2012 bronze medal.

Beth Tweddle said:- "It was absolutely wonderful to be working with such enthusiastic young children at Liverpool ONE. I am really passionate about giving children the opportunity to try new activities and have a go and this event really allowed that to come to life."

The event also marked the return of the annual Liverpool 1 sports grant competition, delivered in partnership with The Guide Liverpool, which will see a total of £3,000 awarded to grassroots sports clubs across the Region. 6 clubs will each receive £500 to help fund kit, training gear, or other essential equipment; giving young athletes the tools they need to thrive.

Last year's competition supported a range of teams from across the Region, helping to fund new equipment, upgrade facilities and ease costs for families involved in local sport. This year, the call is once again open to all clubs and teams working with children aged:- 4 to 16, regardless of sport or size, based in:- Liverpool, Cheshire, Halton, Knowsley, Sefton, St Helens, Warrington, West Lancashire or Wirral.

Jay Hynd, Managing Director of The Guide Liverpool, said:- "Grassroots sport is where dreams begin, and Liverpool is a City built on passion, pride, and community. Our Region is home to some incredible clubs, teams and young talent, and we're proud to play a part in helping them grow. Both Liverpool 1 and The Guide are calling on teams and sports clubs of all sizes to apply. We would love to hear how this funding could make a real difference where it matters most."

Donna Howitt, Place Strategy Director at Liverpool ONE, said:- "Beth's masterclass was a tremendous success and demonstrates our commitment to bringing sport directly to families in the heart of the city. The enthusiasm from the children and their families was inspiring. We're very excited to launch our annual Sports Grant competition once again. Supporting our local community and nurturing sporting talent remains incredibly important to us. We know there are exceptionally talented young people across our Region, and we want to help remove barriers that might prevent them from reaching their potential."

Applications for the Sports Grant are open now and close on Friday, 29 August. Clubs and teams interested in applying will need to explain how they would use the funding, describe their history and community impact, and outline what the support would mean to their members.

The Sports Grant competition forms part of Liverpool ONE's wider Summer on the Park programme, with free events taking place across Liverpool 1 throughout the School holidays. From live music and pop up performances to the return of Tickle the Ivories and an urban beach, there's something for everyone to enjoy; all designed to bring families and communities together in 1 of the City's most vibrant destinations.

For more information about the Sport Grants competition, please visit:- Liverpool-One.Com today. Also, you can find out more about Summer on the Park, on the What's. On section of the website!