One third of UK businesses to raise prices yet again: ONS survey

One in every three UK firms expect to raise their prices because of surging energy bills, says a survey by the Office for National Statistics (ONS).

Around half of all UK businesses reported that prices of materials and goods jumped in April compared to the previous month, with a third of firms stating that their production had been hit by recent increases in energy prices.

The UK’s energy price cap, the maximum amount a utility company can charge an average customer per year for the amount of electricity and gas they use, has risen by 54 percent, meaning a steep rise in bills this spring.

Households and businesses face even higher bills as the boss of the UK’s energy regulator has warned that the energy price cap is expected to rise to around £2,800 in October.

“Now, this is uncertain, we are only halfway through our price cap window but we are expecting a price cap in October in the region of £2800,” Jonathan Brearley, CEO of Ofgem, told the Business, Energy and Industrial Strategy committee.

Around a third of UK businesses (29 percent) expect to increase the prices of goods or services sold in June 2022, with energy prices being reported as the main factor for businesses considering doing so at 38 percent.

Approximately a quarter (23 percent) of businesses reported a lower turnover in April compared to the previous month.

Companies are also having trouble in finding workers, with 12 percent saying they had experienced difficulties in recruiting employees.

A separate survey by the Bank of England revealed that UK businesses last month expected to raise their prices by 5.9 percent over the next year.

Companies expected to see wage growth of 4.8 percent over the coming year, the survey showed.