Small firms feel the pinch as confidence levels plunge

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Confidence amongst small businesses fell for the third successive quarter in Q4 in a sign government cuts have taken their toll on the sector, says the Federation of Small Businesses (FSB).

According to the FSB's latest Voice of Small Business Index, business confidence fell to -13.2 in the fourth quarter, marking the steepest decline since the survey began in March 2010. The FSB adds increasing constraints on business cash flow - including utility bills, fuel duty and VAT - have combined with public sector cuts to stall momentum of the private sector recovery. Furthermore, the federation says growth this year is likely to be "sluggish at best", with employment growth weakening. Whilst 77% of small firms expect to maintain current employment levels in the coming month...

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