Shropshire businesses increase prices to combat fuel bills and inflation
More than two thirds of businesses are increasing their prices in response to the rising cost of living, Shropshire Chamber of Commerce has revealed.
Companies cite soaring energy costs as one of the key factors, alongside an increased wage bill to keep pace with inflation.
The Shropshire Chamber team backed calls from the British Chambers of Commerce for the Government to introduce a temporary energy price cap for small businesses – and extend the financial support for households to small firms.
New figures published by the chambers network show 73 per cent of businesses are raising their prices is response to rising costs, with three quarters of manufacturers saying soaring energy bills are having a massive impact.
Ruth Ross, Shropshire Chamber’s director of business, said: “Companies are under intense pressure from a variety of costs, which is leading to an impending ‘cost of doing business’ crisis.
“Another of the measures being suggested to Chancellor Rishi Sunak by the chambers network is for the planned rise in National Insurance contributions to be delayed for a year.
“We know from our quarterly surveys of the Shropshire economy that many local businesses were already drowning in rising costs even before the energy crisis began to bite.
“Companies across the UK have been asked what they are currently doing in response to rising costs, and as well as raising prices, half of them say they are looking to cut costs, and nearly one in five plan to scale down investment.
“These trends clearly have a much wider impact and knock-on effect to other areas of the local economy, which is why we believe that more Government intervention is needed.”
British Chambers of Commerce 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.
“This latest data reveals that companies are now also under extreme pressure from spiralling gas and electricity bills as well as increased wages.
"The majority are having to raise prices in response, though many are also being forced to scale back planned investment or cut other costs from their balance sheet.
“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.”
