More than two fifths (42 per cent) say they will not survive if tough conditions continue, according to a new survey by insurance comparison website SimplyBusiness.co.uk.

Some 80 per cent report that people are spending less, while 70 per cent say customers are haggling down prices.

Tony Deacon, chief executive of SimplyBusiness.co.uk, says:
‘Tradesmen are in the eye of the storm. Financially, times have never been tougher and it’s no surprise that the cracks are starting to show.’

Of the 200 surveyed, 97 per cent believe that customers are unfairly squeezing their profit margins. On average customers are paying invoices 35 days late, says the survey.

According to figures from debt management company ClearDebt, self-employed people have seen their incomes fall by nearly ten per cent since last year.