Latest figures show the Consumer Prices Index remains above the Government’s 2 per cent target at 2.6 per cent, while the Retail Prices Index has increased to 3.6 per cent.
As well as increasing inflationary pressure, tough business rates revaluation and rising employment costs has meant operating costs for small firms are at their highest in four years.
Mike Cherry, National Chairman at the Federation of Small Businesses (FSB), says: “Operating costs for small firms are now at their highest in four years. Increasing inflationary pressure has coincided with a bruising business rates revaluation and rising employment costs. Our entrepreneurs are paying themselves less and further increasing prices in an attempt to handle the strain. Four in ten small firms raised prices in response to April’s National Living Wage increase.
Mr Cherry goes on to question whether the current inflationary measure is fit for purpose and warned that the Chancellor needs to give careful consideration to the upcoming Budget.
At Beavis Morgan, we know that running your own business has its challenges, and that as a business grows, the various problems and opportunities demand different solutions. We are well versed in working with SMEs and owner-managed businesses of various sizes across a range of industry sectors, so you can rely on our detailed understanding of the specific kinds of issues that can arise, and you can count on our expertise and ability to provide the right solutions.
For more information about how we can help you and your business, contact Steve Govey or your usual Beavis Morgan Partner.