More UK firms expect to raise prices than at any time since 1980s
More UK businesses are preparing to raise prices than at any time since the 1980s, heaping further pressure on hard-pressed consumers amid recent increases in gas, electricity and petrol prices.
The British Chambers of Commerce said its latest quarterly survey found almost two-thirds of firms expected to raise prices over the next three months, the highest since the survey began in 1989.
Amid warnings from opposition MPs and business groups that ministers should offer more support to struggling businesses, a record number of manufacturers and services firms said they would be increasing prices.
The survey of more than 5,600 firms also revealed domestic sales had stagnated across most sectors and business investment remained at historically low levels.
Investment in plant, machinery and equipment continued to stagnate, the BCC said, with 27% of firms reporting an increase in investment spending, while 58% reported no change, and 15% a decline.
“This metric remains largely unchanged since the second quarter of 2021,” it added. This is despite a tax break since April 2021 that offers firms a deduction from their profits of 130% for each £1 of investment spending.
Labour said the BCC survey showed inflationary pressures were gaining momentum, as the costs of imported raw materials and energy surged on international markets.
Jonathan Reynolds, the shadow business secretary, said: “Instead of supporting business with spiralling inflation, the Conservatives are ramping up taxes and turning their back on energy intensive industries.”
Last month, data showed consumer confidence fell back to levels last seen in November 2020, just before the second national Covid-19 lockdown. The widely used GfK index tumbled to -31 in March as consumers
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