More than six in 10 businesses planning on raising prices to cope with inflation

Business confidence is as low as it was during the COVID pandemic, according to a survey from the British Chamber of Commerce (BCC), with two-thirds (65%) of businesses planning to raise prices due to cost pressures.

Around half (47%) of UK firms said they would struggle to pay their energy bill once the current business support package ends.

The survey of over 1,000 companies also found that that only one in three (34%) businesses believed their profits will increase over the coming year, and 36% expected a decline.

A quarter of firms reported a decrease in sales in the last quarter of 2022, with hospitality firms the least likely to report improvements.

Shevaun Haviland, director general of the BCC, said: “This snapshot of the state of play for business at the start of 2023 sets out exactly why the chancellor must act in his budget to fuel investment in the UK.

“We know we have a tough year ahead. With costs piling up on their doorsteps and so much uncertainty on government policies, there is currently little incentive for firms to risk either their dwindling cash reserves or fresh loans on new projects.

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