Small business’s confidence in London has plummeted, with confidence in some sectors at an all-time low.

According to a new report by the Federation of Small Businesses (FSB), London small firms’ confidence levels fell to 62.6 in the fourth quarter of 2024, down from negative 1.2 per cent points in the previous quarter.

Outside of the pandemic, this FSB report revealed that small businesses’ confidence is at its lowest recorded level.

London saw the worst drop. Confidence levels of small businesses in the wider economy stood at 40.1.

Confidence in the accommodation and food services sectors hit an all-time low of negative 111 points.

The wholesale and retail sectors followed, at negative 94.2 points, while firms in the professional, scientific, and technical activities sectors were the least pessimistic, at negative 40.1 points.

However, between the third and fourth quarters, construction saw the most significant decline in confidence, jumping from negative 26.6 points to negative 76.8 points.

Most of those quoted in the report stated that the domestic economy was “once again” the top barrier to growth.

However, the tax burden jumped to second place, with over 43 per cent of small businesses citing it as one of their top barriers.