Contraction bleak news for small businesses Responding to the news that the UK economy contracted over the third quarter, the national chairman of the Federation of Small Businesses, Martin McTague, said: “Confirmation of a shrinking economy is dreadful news for small businesses that have been facing increasing recessionary pressures for months now.” He continued: “Lower levels of reserves and resources mean they are more vulnerable to downturns, and at a time when confidence is deteriorating in both consumers and businesses, the outlook for the UK economy is now very bleak indeed.” A prolonged recession, following on from the lack of motorsport during the pandemic, will hit motorsport SME's very hard.