Smaller businesses are preparing to hike prices over the festive period, as a result of rising costs and supply chain disruption, according to a new report.
Accountancy firm BDO said its research highlights four in five mid-sized firms said they are expecting supply-chain strains, rising costs and Covid-19 restrictions to hamper trading in the next month.
A further third of 500 businesses surveyed revealed they were planning to up their prices.
Firms have been facing rising utility and fuel costs over the autumn and now bosses say they expect this to impact consumers in the period ahead.
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Around 32 per cent of mid-sized firms in the retail and wholesale sector said they will increase prices.
Some 32 per cent of businesses overall said they plan to cut the number of products or services they offer as a direct result of inflation.
“Following a year of disruption, many businesses will have been hoping for a strong finish to 2021 and a fresh start for 2022,” BDO partner Ed Dwan.
“The harsh reality is that continued supply chain issues, rising energy prices and increasing costs means that many are taking further drastic measures to stay afloat.”
Bosses have warned that the return of Covid-19 restrictions could place further strain on the availability of goods and services.
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