By Lynne Gowers on 16th February 2022

Soaring wage and energy costs force three quarters of UK businesses to raise prices

Around three quarters of UK businesses say they are putting up prices in response to surging costs such as wages, energy and raw materials, according to a new survey.

The survey of more than 1,000 firms, which was conducted by the British Chambers of Commerce (BCC), showed that businesses across the country are under intense pressure from a variety of costs.

It found that prices were likely to rise as a result, further fuelling the cost-of-living crisis for households.

Rising energy bills were cited as the driving factor by 62% of respondents, rising to 75% for manufacturers. Meanwhile, 63% cited increased wage bills as driving prices rises.

The BCC has called on the Chancellor to adopt their five-point plan to address these challenges. These include a temporary energy price cap for small businesses and the extension of the financial support announced for households last week to include small firms.

BCC Director General Shevaun Haviland said: ‘Without help from the Treasury to weather this storm many businesses, especially smaller ones, will be faced with a nearly impossible situation that will leave them with little choice but to raise prices.

‘The Chancellor must implement our five-point plan to give firms a chance to stabilise without having to seriously increase their prices, cut jobs or the investment that is so vital to sustaining our economic recovery from Covid.

‘Unabated, the surging cost pressures produced by the cost-of-doing-business crisis will continue to lead to increased prices and fuel the cost-of-living crisis currently being faced by people across the country.’

Written by Lynne Gowers
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