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2011.10.1710:11:00UTC+00UK Small Business Confidence Falls Sharply In Q3

Small business confidence in the U.K deteriorated sharply in the third quarter, due to the pressure of weak demand and rising costs, data from a survey by the Federation of Small Businesses showed Monday.

The indicator of small business confidence dropped to minus 9.3 in the third quarter from 0.3, indicating that businesses were more pessimistic about the economy.

During the survey, 11 percent of respondents said extending the National Insurance Contributions (NICs) holiday to more businesses would be an incentive to take on staff. The agency called for a targeted and time-specific VAT cut to encourage people to spend more.

"It is the first time since we started the Index that we have seen more people believe that they're going to lay off staff than take them on," John Walker, National Chairman, Federation of Small Businesses, said. "This has to show the Government that a more robust plan for growth is needed."

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