Companies having to raise prices

Last updated 11:48, Wednesday, 06 August 2008

ALMOST half of small businesses are increasing their prices because of the rising cost of energy, fuel and services, according to new research today.

A survey of 350 companies showed that 44 per cent said they had “no choice” but to pass on rising costs to their customers.

Telecoms firm Unicom, which conducted the study, said firms were being forced to increase prices despite the risk of losing business.

John Wright, chairman of the Federation of Small Businesses, commented: “Obviously, the rise in energy prices, fuel and inflation is going to have an effect on small businesses and, regrettably, this has to be passed on to their customers or they limit their expansion for that year.

“We are living in hard times and everyone should make sacrifices to keep prices down.”