[UK] Welsh business owners have UK’s highest level of mental health issues

A survey has revealed that Welsh business owners have the highest levels of mental health issues when compared with the rest of the UK, Business Live reports.

According to a monthly SME Recovery Tracker from the Association of Chartered Certified Accountants (ACCA) and The Corporate Finance Network (CFN), 45 per cent of Welsh business owners feel more stressed and anxious than usual. The figure is a 37 percentage point increase from pre-Christmas levels and 10 per cent higher than the rest of the UK (35 per cent).

In addition, 28 per cent of Welsh business owners have difficulty sleeping and 24 per cent say their mental health has worsened.

The survey polled accountants representing more than 17,600 businesses. It reportedly found that economic, operational and financial pressures are taking their toll on the wellbeing and mental health of Welsh SMEs.

These issues are not only affecting mental health; mounting financial pressures including surging inflation, interest rate rises, the energy crisis and the increase in National Insurance contributions are also severely impacting Welsh businesses’ ability to survive or grow.

The survey showed a particularly bleak picture of the current strains on Welsh businesses who are feeling the squeeze of the COVID pandemic the most, compared to the rest of the UK.

More than 2 in 5 Welsh SMEs say they will struggle to meet rising payroll costs in April due to the incoming health and social care levy increase in NICs, as well as rising minimum wage rates. This is 14 per cent higher than the UK national average of 26 per cent.

Almost half are expecting to run out of cash in the next year (47 per cent), more than double the UK national average of 1 in 5 (21 per cent) UK small businesses.

However, despite increasing pressures, over a third (34 per cent) of Welsh small business owners are hopeful about growth ambitions in the next six months.

The findings demonstrate an appetite for growth but a worrying 81 per cent of Welsh SMEs are unaware of the finance options available to them; 13 percentage points higher than the national average.

Lloyd Powell - head of ACCA Cymru Wales - said, “Our latest research reveals alarming results about the current pressures on Welsh SMEs and the impact those pressures are having on their wellbeing. With 2 in 5 (40 per cent) Welsh SMEs anticipated to struggle to meet payroll costs in April, the UK government needs to seriously consider the knock-on effect of policy decisions, and also what further support the Welsh Government can provide.

“Ultimately, these figures indicate that many Welsh businesses are at risk of failing this year due to the impact of rising costs including the impending increases in National Insurance Contributions (NICs) and minimum wage rates.”

Kirsty McGregor - founder of The Corporate Finance Network - said, “All indicators across this Tracker are alarming. As our research suggests, the hike in National Insurance rates will leave already demoralised small business owners and sole traders in an extremely testing position. UK SMEs have already endured prolonged financial strain with 6 per cent of UK SMEs expressing they are unable to cope.

“While SMEs remain hopeful and the findings demonstrate an appetite for future growth, the onus rests on the government to support SMEs, to provide them with the resources that they need, instead of placing more hurdles for them to overcome.”

Claire Bennison - head of ACCA UK - said, “Our research reveals a very uncertain start to the new year for SMEs, countered with optimism about the long term for 2022. However, this essential progress can’t be achieved without the cash flow and people to help them grow, or indeed the resilience to do this too.

“With more than 1 in 4 UK SMEs anticipated to struggle to meet payroll in April, the government needs to seriously consider the economic implications of the planned hike in National Insurance rates and the impact it will have on UK SMEs who serve as a backbone to the UK economy. Ultimately, these figures point to the danger of businesses failing.”

Source: Business Live

(Quotes via original reporting)

A survey has revealed that Welsh business owners have the highest levels of mental health issues when compared with the rest of the UK, Business Live reports.

According to a monthly SME Recovery Tracker from the Association of Chartered Certified Accountants (ACCA) and The Corporate Finance Network (CFN), 45 per cent of Welsh business owners feel more stressed and anxious than usual. The figure is a 37 percentage point increase from pre-Christmas levels and 10 per cent higher than the rest of the UK (35 per cent).

In addition, 28 per cent of Welsh business owners have difficulty sleeping and 24 per cent say their mental health has worsened.

The survey polled accountants representing more than 17,600 businesses. It reportedly found that economic, operational and financial pressures are taking their toll on the wellbeing and mental health of Welsh SMEs.

These issues are not only affecting mental health; mounting financial pressures including surging inflation, interest rate rises, the energy crisis and the increase in National Insurance contributions are also severely impacting Welsh businesses’ ability to survive or grow.

The survey showed a particularly bleak picture of the current strains on Welsh businesses who are feeling the squeeze of the COVID pandemic the most, compared to the rest of the UK.

More than 2 in 5 Welsh SMEs say they will struggle to meet rising payroll costs in April due to the incoming health and social care levy increase in NICs, as well as rising minimum wage rates. This is 14 per cent higher than the UK national average of 26 per cent.

Almost half are expecting to run out of cash in the next year (47 per cent), more than double the UK national average of 1 in 5 (21 per cent) UK small businesses.

However, despite increasing pressures, over a third (34 per cent) of Welsh small business owners are hopeful about growth ambitions in the next six months.

The findings demonstrate an appetite for growth but a worrying 81 per cent of Welsh SMEs are unaware of the finance options available to them; 13 percentage points higher than the national average.

Lloyd Powell - head of ACCA Cymru Wales - said, “Our latest research reveals alarming results about the current pressures on Welsh SMEs and the impact those pressures are having on their wellbeing. With 2 in 5 (40 per cent) Welsh SMEs anticipated to struggle to meet payroll costs in April, the UK government needs to seriously consider the knock-on effect of policy decisions, and also what further support the Welsh Government can provide.

“Ultimately, these figures indicate that many Welsh businesses are at risk of failing this year due to the impact of rising costs including the impending increases in National Insurance Contributions (NICs) and minimum wage rates.”

Kirsty McGregor - founder of The Corporate Finance Network - said, “All indicators across this Tracker are alarming. As our research suggests, the hike in National Insurance rates will leave already demoralised small business owners and sole traders in an extremely testing position. UK SMEs have already endured prolonged financial strain with 6 per cent of UK SMEs expressing they are unable to cope.

“While SMEs remain hopeful and the findings demonstrate an appetite for future growth, the onus rests on the government to support SMEs, to provide them with the resources that they need, instead of placing more hurdles for them to overcome.”

Claire Bennison - head of ACCA UK - said, “Our research reveals a very uncertain start to the new year for SMEs, countered with optimism about the long term for 2022. However, this essential progress can’t be achieved without the cash flow and people to help them grow, or indeed the resilience to do this too.

“With more than 1 in 4 UK SMEs anticipated to struggle to meet payroll in April, the government needs to seriously consider the economic implications of the planned hike in National Insurance rates and the impact it will have on UK SMEs who serve as a backbone to the UK economy. Ultimately, these figures point to the danger of businesses failing.”

Source: Business Live

(Quotes via original reporting)