Rising energy prices worry SME owners — price-hikes coming

A SURVEY of 1,000 British SMEs indicates that rising fuel and energy costs are the greatest threats to survival in 2022.

Half — 49 percent — said that they intend to increase their prices as a result. Those price hikes will range from six to 20 percent.

According to the SME Insights Report, published by small business insurance provider Simply Business, 36 percent listed tax and national insurance hikes as their greatest concern. A majority — 70 percent — of SME owners say that rising costs across the board are the biggest challenge.

The owners of 59 percent of the businesses surveyed are calling on the government to review or reduce the energy price cap. One fifth of those canvassed believe the VAT cut needs to be reviewed or extended; slightly fewer (12 percent) feel that the government should review or reduce national insurance.

While energy price caps do not directly apply to businesses, millions of SMEs are struggling with increased energy bills as costs rise in most operational areas. Householders, affected by rising energy bills, find their purchasing power is diminishing.

Food and drink, hospitality and retail are designated “most at risk”.