Falling inflation does not mean falling pressure for the UK’s small & Micro Businesses

In this GB News interview on 18 February 2026, Liz Barclay warns that falling inflation does not mean falling pressure for the UK’s small and micro businesses.

While the headline inflation rate has dropped to 3%, Liz explains that small firms are facing a very different reality. Their costs are driven by wages, rent, insurance, business rates and borrowing – many of which are still rising sharply. Some businesses are seeing double-digit increases in core costs, leaving little choice but to absorb losses or raise prices.

Drawing on examples from businesses contacting Business111, Liz highlights how demand remains fragile. Footfall may be up, but customer spending is down as rising costs ripple through supply chains, squeezing margins even during peak trading periods.

She also challenges claims that the fall in inflation is solely the result of political decisions, noting that economists have long expected inflation to ease over time. While a potential interest rate cut would help cashflow, it will not resolve the deeper problem: the sheer cost of running and growing a small business.

Hiring is a key concern. For micro businesses, bringing in young workers and building skills can cost tens of thousands of pounds before any return is seen. That reality explains why many firms are holding back on recruitment, despite calls to create jobs.

Liz’s warning is simple: small and micro businesses are the backbone of the UK economy. If rising costs continue to push them to the edge, the consequences will be felt far beyond individual firms – across jobs, skills, communities and long-term growth.

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