One in three UK businesses paid more for the goods and services they bought in September, according to the latest ONS business survey. That is 12 percentage points higher than a year earlier. Energy prices are also climbing the list of worries for the months ahead.
01What the ONS business survey found
The Office for National Statistics published the survey on 22 October. Businesses answered it between 5 and 18 October.
According to the ONS, 33% of trading businesses reported paying more for the goods and services they bought in September. That is up 4 percentage points from August. It is still below the recent peak of 40% in April.
Construction was hit hardest. More than half of construction firms, 52%, said their input prices had gone up.
Fewer firms have passed the rise on so far. Only 12% raised the prices they charge in September. But 17% expect to raise their own prices in November, and energy was the most common reason, given by 32% of them.
02Energy is rising as a concern
According to the ONS, 15% of businesses said energy prices will be their main concern in November. That is up 5 percentage points in a month.
The worry is sharpest in transport and storage, at 33%. Pubs, cafes, hotels and restaurants come next, at 25%. Overall, 70% of businesses reported some concern about energy prices, and 72% about fuel prices.
03What that does to your cash
Why does this matter if your profits look fine? Because costs usually rise before your prices do.
You pay the higher supplier bill this month. Your own price rise reaches customers later, and some customers pay you later still. That gap has to be covered from the cash in the bank.
The simplest defence is to see the gap coming. A 13-week cash flow forecast shows the weeks where money going out runs ahead of money coming in. It also gives you time to talk to suppliers and review your own prices.
If the forecast shows a gap you cannot close, it is better to arrange funding early than in a hurry. In our experience, lenders respond better to a business that has planned ahead. If you are already trading and need working capital, our growth finance team can look at the options with you.
