Over 30% of UK businesses have been forced to increase prices to keep up with the rising costs of energy and foodstuffs.
The average UK micro business, if renewing both its electricity and gas contract within the current climate, would see its annual energy cost increase from £6,620 to £16,180 which is crippling for many small businesses.
While turnover is down for many businesses, so is staff retention and acquisition. The hospitality industry is one sector that is being hit very hard from all sides of this crisis.
Surveys by the Bank of England revealed that businesses are expected to raise their prices by 6% over the next year, with companies expecting to see wage growth of 4.8% over the coming year. However, these figures represent the economy as a whole, including the UK’s export market.
In reality, we will see much higher prices on the high-street, especially in our favorite family-run businesses like butchers, cafes, bars, restaurants, etc. The government really does need to step in to protect small businesses before it’s too late. And personally, I don’t think that point is more than 12 months away for many.