Rising costs hitting UK small businesses, warns FPB

Thursday 14 November 2013

Business

UK businesses are continuing to face rising costs - at an average of 3.5 per cent ahead of inflation - meaning it is all the more important they are able to use resources efficiently.

According to research conducted by the Forum of Private Business (FPB), 94 per cent have seen an overall increase in expenditure during 2013.

Some 94 per cent said they have seen energy costs rise, while 87 per cent had spent more on transport, 78 per cent more on marketing and 69 per cent more on raw materials/stock.

Of those surveyed, 41 per cent said they had been unable to pass any rising costs onto customers, with just two per cent doing so in full.

Alexander Jackman, the forum's head of policy, said the major reasons for increases in prices are down to transport and energy prices rising, coupled with the continued weakness of sterling for importers.

"The economic outlook may be better but costs still remain an issue for our members and a key focus of our lobbying and support services," he stated.

"Unfortunately, it doesn't look as if there is going to be any respite from energy hikes any time soon, despite the ongoing political pressure to take action to introduce more competition in the market, with many of the major players recently announcing significant increases and others expected to follow suit."

With costs rising, Microsoft solutions can help your organisation make efficiencies and stay competitive.

Posted by Dan Smith