Confidence among London’s small firms has risen to a 12 month high according to research by the Federation of Small Businesses.
According to the FSB’s London Small Business Index, confidence stands at 24 in Q1 2017, the highest figure since Q4 2015, and considerably up on the -3.4 recorded after the EU referendum.
The FSB says the rise comes despite “a surge” in overheads, including rises in the cost of staff, regulation, utility costs and the falling value of the pound.
The lobbying group has also highlighted the “astronomical hike in business rates” as a challenge facing London’s employers.
Despite the challenges, its research revealed that nearly a half of businesses (48%) expect gross profits to increase in the coming three months, with just a fifth saying they expected profits to fall.
Sue Terpilowski, London Policy Chair, Federation of Small Businesses, said: “We are pleased to see members are remaining stoic in the face of economic uncertainty in the capital.
“The expected increases in gross profits in the coming months is great news, however, we need to realise that the hard costs of operating a business in the capital have started to outweigh the benefits which simply does not make economic sense.
“We cannot continue to tax small firms in the capital to a tipping point that makes it difficult to grow further. “