Small businesses fear rising prices will slow the recovery
Almost half of Britain’s small businesses say the increased cost of doing business is a concern for them in the new year.
And across the wider economy, inflation is seen as a threat by around three-quarters.
Inflation is heading north already and is expected to peak at around six to seven per cent in April when new energy bills land on the doormats of domestic and business customers, driven up by a rise in the price of wholesale gas.
The poll, conducted by small business lender Iwoca, suggests optimism is in short supply. Fewer than one in three expect turnover to grow in the coming year.
High street businesses including Greggs and Next have signalled their intention to hike prices this year as a result of supply chain pressures, and the survey suggests smaller businesses are also feeling the pinch from supply chain constraints and shortages.
Iwoca boss Seema Desai said the “knock-on effect” of inflation could hold back the recovery.