Time Finance research has revealed that one in five businesses are struggling to remain competitive in the wake of rising costs and UK inflation reaching a 40-year high of 9.1%.
The data also shows that 91% of UK SMEs have been forced to hike their own prices to keep up with soaring operational costs. 63% of firms were found to have increased their prices by 10% and one in five by up to 30%.
Of the businesses surveyed, ‘soaring energy and utility costs’ and the rising ‘cost of materials and stock’ ranked the two greatest threats to businesses right now.
“As inflation continues to rise at an accelerated rate, the only option businesses have to deflect the detrimental impact and continue trading, is to increase their costs. But with the interest rate now taking a hike consecutively month on month, the mountain of rising costs across the board are not sustainable for anyone. Something needs to change in order for businesses to not only survive, but create jobs, inspire innovation and continue generating wealth for our economy,” said Ed Rimmer, Time Finance CEO.