A survey carried out by the Institute of Chartered Accountants in England and Wales (ICAEW) has revealed that the aftermaths of the coronavirus (COVID-19) pandemic and Brexit have caused a 'huge rise in costs' for UK businesses.
The survey showed that 70% of companies surveyed are considering hiking prices over the coming year. In addition, 62% of businesses reported an increase in customer demand over the past three months.
The survey also found that 92% of businesses in the manufacturing sector are paying increased prices for the supplies they require.
Additionally, 90% of businesses who import most of their supplies from outside of the UK revealed that they are being charged more.
Iain Wright, Managing Director of Reputation and Influence at the ICAEW, said: 'Our members – who work in businesses in every UK region and economic sector – are reporting long lead times for raw materials and components, disruptions to supply chains because transport companies are unable to recruit drivers, plus delays at the border as our trading arrangements with Europe have changed.
'Many businesses who have experienced cost increases are now planning to increase their prices as their ability to meet the post-lockdown surge in demand is constrained by supply hold-ups and associated cost pressures.'