The Consumer Prices Index (CPI) rose by 0.6 per cent in the year to July 2016, up from 0.5 per cent in June. According to the British Chambers of Commerce (BCC): "Rising prices for motor fuels, alcoholic beverages and accommodation services, and a smaller fall in food prices than a year ago, were the main contributors to the increase in the rate". Commenting on the CPI increase, head of business finance and economics at the BCC, Suren Thiru, said: "While still weak by historic standards, we expect this rise to be the start of a prolonged period of increasing prices, as the post-EU referendum slide in sterling feeds through to high input costs. Higher inflation squeezes consumer spending and increases cost pressures on businesses. However, if economic growth slows as many expect, price rises are likely to be limited."
With this in mind, it is essential that business owners of UK SMEs maintain effective management of their company’s working capital. This will not only help you to to ensure you have the cashflow needed to survive and thrive, it will also expose any pressure points within the cash cycles, helping you boost efficiency and even save costs – all vital elements in helping your business survive and thrive in challenging times.
Contact our specialist advisers at Beavis Morgan for guidance and strategic advice to help in formulating plans for your business in order to strengthen its prospects of success, achieve growth and maximise wealth. Our partner business, BM Structured Finance, is also available to help with sourcing and restructuring debt finance for SME businesses.
For further information, contact Steve Govey or your usual Beavis Morgan Partner.