27 percent of consumers want small businesses excluded from Government’s cost cutting campaign
Nation Divided on Cost of Living Tsar’s Proposals July 2022: Following news that the Government plans to launch a campaign to encourage businesses to cut prices[i] to help with the cost-of-living crisis, 27% of consumers in a survey by Purbeck Personal Guarantee Insurance have said they think small businesses should be excluded from the campaign. […]
Nation Divided on Cost of Living Tsar’s Proposals
July 2022: Following news that the Government plans to launch a campaign to encourage businesses to cut prices[i] to help with the cost-of-living crisis, 27% of consumers in a survey by Purbeck Personal Guarantee Insurance have said they think small businesses should be excluded from the campaign.
While 53% of those surveyed thought small businesses should be included in the initiative and take steps to cut their prices, the remainder, 20% were unsure.
The findings suggest the ‘one size fits all’ campaign devised by the Cost of Living Tsar – David Buttress – may not receive wide support from small businesses owners who are already struggling with rising costs, the ongoing effects of the pandemic and staff shortages.
Todd Davison, MD of Purbeck Personal Guarantee Insurance, the specialist personal guarantee insurance provider to small business owners and directors said: “The idea that businesses divert their marketing spend into supporting price cuts works as long as there is marketing budget there in the first place. Businesses need to innovate in tough times and that’s what small businesses excel at. Simply slashing prices as a small business owner creates unrealistic expectations and devalues the proposition.
“We have seen demand for finance increase from small businesses and await details of a new lending scheme to replace the Recovery Loan Scheme which closed at the end of June. In the absence of any further support from the Government, despite the hard campaigning of the FSB[ii], small businesses need to seriously consider whether they can or should cut prices for the ‘kudos’ of taking part in this campaign.”
More in Insurance
145,000 Bounce Back Loans worth £3.8bn in Arrears
145,000 Bounce Back Loans worth £3.8bn in ArrearsMay 2023: A Freedom of Information request to the British Business Bank by Purbeck Personal Guarantee Insurance, the U.K.’s only provider of personal guarantee insurance (PGI) to small business owners has revealed the current level of debt and arrears associated with the Bounce Back Loan Scheme (BBLS)[i], The Coronavirus Business […]
93% year on year increase in small business owners taking personal...
Big uptick in applications with 32% of personal guarantee backed loans for working capital April 2023: The fear of business failure is not stopping small and medium sized business owners from taking on new finance, despite a 33% rise in insolvencies[i], as increasing numbers are using insurance to reduce the risk. The Purbeck Personal Guarantee […]
New analysis suggests just 10% of small business loans go to...
The total value of loans supported by Personal Guarantee Insurance was over £300m in 2022, but just 4% of that value was for female foundersFebruary 2023: Following news that a record number of new businesses were founded by women in 2022[i], new analysis of personal guarantee backed loans has uncovered a huge disparity in the […]
From this author
Upsize to a HGV fleet for greener motoring, says Venson
Investing in a vehicle fleet greater than 3.5T Gross Vehicle Weight (GVW) with drivers qualified to handle them could improve a business’s carbon footprint and its bottom line www.venson.com As the UK gets to grips with a revamped government strategy to meet its 2030 emissions cut target, the pressure is on for fleet decision-makers to […]
Improving road safety for all with dash cams and fleet telematics
Tracker helps fleet managers educate company car drivers of the wider benefits London – 30th May 2023 – Tracker Network (UK) Ltd is reminding fleet operators of the invaluable safety benefits of smart dash cams and telematics solutions to protect drivers. Whilst not all business drivers are happy to have this technology accompany them on the road, Tracker […]
Barclays invests in brand new working capital technology for corporate clients
Barclays is looking to drive the growth of next-generation business through a £3m investment into Trade Ledger and the implementation of its working capital platform The bank has signed a three-year technology deal which will deliver fast, easy access to working capital for corporate clients London, 25th May 2023: Barclays has today announced that it is […]