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UK Small Businesses Plan More Price Rises as Costs Bite

Rising supplier bills, energy costs and wages are squeezing margins and prompting firms to plan further price increases in 2026.

Overview

  • A Smart Energy GB survey of 500 small business owners published on Thursday found two-thirds have raised prices three or more times in the last five years and one in four plan another rise before summer ends.
  • The survey reports average outgoings rose about 17% in the past 12 months and monthly energy costs are about 23% higher over five years, with supplier prices and energy bills the main reasons for past increases.
  • Eighty-two percent of owners expect further price rises through 2026 while 88% say raising prices is a last resort and 86% have tried to absorb costs by cutting non‑essential spending, trimming profit margins or reducing owners' pay.
  • Victoria Bacon of Smart Energy GB urged firms to use smart meters and energy tracking to spot savings, and a quarter of owners are already taking steps to cut energy use or renegotiate supplier deals.
  • A separate OnePoll survey of 2,000 adults shows 54% have cut discretionary spending but 84% still prefer to support local independent shops, a tension that could put high‑street firms at risk if price sensitivity turns into lost sales.