A survey of small business owners found that two in three have raised prices three or more times in the last five years – with a quarter set to put them up again before the end of summer
Two-thirds of small businesses have hiked their prices three times or more in the past five years – with a quarter planning another increase before summer’s end.
A study of 500 business owners found that supplier costs and energy bills are the primary reasons for passing on costs to customers in recent years. Almost half (49%) also considered staff wages before raising their prices during this time.
Over the last year, small business owners have seen their expenses surge by nearly 17% on average, while the previous five years have seen monthly energy costs increase by an average of 23%.
Now, 82% are bracing themselves for further increases throughout the rest of 2026.
The research, commissioned by Smart Energy GB, revealed that 88% of business owners consider price increases as a last resort. However, 86% have made behind-the-scenes adjustments to avoid passing costs onto customers wherever feasible.
Many have cut back on non-essential spending (31%), absorbed costs by reducing profit margins (30%), and even reduced their own salaries (28%).
A quarter have worked to cut their energy usage, while 23% have entered negotiations with suppliers to secure better deals.
Victoria Bacon, a director at Smart Energy GB, said: “We can see many small business owners are doing everything they can to manage rising running costs, while limiting the impact on their customers.
“When it comes to managing bills, a smart meter can help business owners track their energy use and identify where they might be able to save some money on their energy costs.
“It can be a helpful tool for small business owners having to manage cashflow and budgets, and it’s quick and easy to get a smart meter installed.”
It was revealed that while 34% believe customers have generally been understanding when prices have risen, a staggering 81% are still concerned about the prospect of hiking them further.
Of these, 38% recognise that customers are already grappling with the cost of living and may not be able to stretch their budgets any further. An additional 36% worry that their customer base could start seeking cheaper alternatives elsewhere.
A separate survey of 2,000 adults delved into how much Brits are prepared to shell out on everyday items before drawing the line.
On average, punters are willing to fork out £5.45 for a pint of beer and £6.23 for a glass of wine. Shoppers also set a limit of £3.99 for a takeaway coffee and £4.79 for a sandwich from a local café or bakery.
When it comes to meals, those surveyed are happy to spend around £11 on a full English breakfast or fish and chips, but are content to pay over £15 for a Sunday roast.
More than half (54%) confessed they have reined in discretionary spending in recent years.
Eating out (55%), new clothes (51%) and takeaways (49%) are among the most common areas where budgets have been tightened.
Despite this, a whopping 84% still believe it’s crucial to back their local independent businesses, according to a survey conducted by OnePoll.
A significant 61% want to do so to bolster the local economy, while 56% are keen to contribute to job preservation. A further 53% express a desire to help prevent closures of shops on their local high streets.
THE AVERAGE AMOUNT BRITS ARE WILLING TO SHELL OUT FOR:
- Pint of beer – £5.45.
- Glass of wine – £6.23.
- Takeaway coffee – £3.99.
- Takeaway sandwich from café/bakery – £4.79.
- Pastry from café/bakery – £3.73.
- Full English breakfast – £11.01.
- Portion of fish and chips – £10.97.
- Sunday roast – £15.14.
- Takeaway pizza – £12.47.
- Burger and fries from a fast-food restaurant – £10.23.
- Manicure – £31.37.
- Pedicure – £31.48.
- Spray tan – £30.34.
- Haircut – £31.24.