Contractors are facing double the rate of inflation costs
Small business contractors are facing cost increases of 11.1%, double the general rate of inflation.
These figures have been released by insurance company More Than Business in its newly launched Business Inflation Guide.
In the second quarter this year, the guide found that contractors – such as builders, electricians, plumbers and gardeners – were hit by cost increases of 4.2%, largely due to rising raw material and fuel costs.
“We suspected that UK contractors were under great cost pressures but we could find no data to confirm this. So we set out to create the first purpose built measure of small business inflation. The results surprised even us,” commented Mike Bowman, head of More Than Business.
“Now that we have a true picture of rising costs for contractors, people will be asking the Government what realistic measures can be taken to support them, particularly in the current economic climate.”
The Business Inflation Guide (BIG), developed in conjunction with Warwick Business School, reveals that small businesses2 are bearing the brunt of price increases across almost all expenditure items, but due to their cost structures, they are suffering more than general inflation indicators suggest, in everything from fuel and energy to labour costs and raw materials.
“When costs are rising contractors really should leave no stone unturned in the search for savings,” continued Mike Bowman.
“The top priority, if they haven