According to new research from business group, the Forum of Private Business (FPB), the cost of doing business in the UK has increased ahead of the rate of inflation in 2013.
The Cost of Doing Business survey, carried out among the members of the business group shows that organisations still face an uphill battle to make ends meet, despite positive signs of an economic recovery.
Results from the survey show that:
- 94% of businesses have seen an overall increase in their business costs.
- 87% of businesses reported an increase in energy costs.
- 83% saw an increase in transport costs.
- 78% a rise in marketing costs.
- 69% a rise in the cost of raw materials/stock.
41% of those surveyed were unable to pass any rising costs onto customers, forcing them to cut their own costs to keep prices static. Alexander Jackman, the Forum’s Head of Policy, said: “The major reasons for increases in prices are predominantly down to transport and energy prices rising, coupled with the continued weakness of sterling for importers. The economic outlook may be better but costs still remain an issue for our members and a key focus of our lobbying and support services.”
“Unfortunately, it doesn’t look as if there is going to be any respite from energy hikes any time soon, despite the ongoing political pressure to take action to introduce more competition in the market, with many of the major players recently announcing significant increases and others expected to follow suit.”
Other major findings from the survey include:
- 81% of firms indicated that rising business costs have been detrimental to their business.
- 73% have had cash flow issues
- 63% feel that it has inhibited their plans for growth.
As the UK and Ireland’s leading Cost Management consultancy, Auditel is currently reducing financial waste and improving bottom line profits for thousands of organisations across all areas of business expenditure. Our clients range from small businesses to global brands such as Pizza Express, YMCA and Oxford University. Our flexible fee structure gives clients’ choice and the ability to manage cost and strategy for the long term.
If rising costs continue to affect your business growth, contact us to find out how an Auditel Consultation could help.