Two in three small businesses have hiked their prices three times or more over the past five years – with a quarter planning to raise them again before summer ends.
Research involving 500 business owners found that supplier costs and energy bills are the main drivers behind passing expenses on to customers. Nearly half (49%) also took staff wages into account before raising their prices during this timeframe.
Over the last 12 months, small business owners have watched their outgoings climb by nearly 17% on average, while the previous five years have witnessed monthly energy costs surge by an average of 23%.
Now, 82% are preparing themselves for additional increases throughout the remainder of 2026.
View 2 ImagesPrices of everyday items are set to rise again(Image: Getty Images)
According to the research, commissioned by Smart Energy GB, 88% of business owners said raising prices is a last resort, and 86% have implemented changes behind the scenes to prevent passing costs on to customers wherever possible.
Many have reduced non-essential spending (31%), absorbed costs by cutting profit margins (30%), and even slashed their own salaries (28%).
A quarter have taken steps to reduce their energy consumption too negotiating with suppliers to secure more favourable deals.
Victoria Bacon, a director at Smart Energy GB, said: “We can see many small business owners are doing everything they can to manage rising running costs, while limiting the impact on their customers.
“When it comes to managing bills, a smart meter can help business owners track their energy use and identify where they might be able to save some money on their energy costs.
“It can be a helpful tool for small business owners having to manage cashflow and budgets, and it’s quick and easy to get a smart meter installed.”
It was revealed that while 34% believe customers have broadly been understanding when prices have increased, 81% remain anxious about the prospect of raising them again.
Of these, 38% recognise that customers are already grappling with the cost of living and may not be able to stretch their budgets any further. A further 36% worry their customer base might begin searching elsewhere for more affordable alternatives.
A separate survey of 2,000 adults examined how much Brits are prepared to spend on everyday items before reaching their limit.
On average, drinkers are prepared to pay £5.45 for a pint of beer and £6.23 for a glass of wine. Shoppers also limit spending at £3.99 for a takeaway coffee and £4.79 for a sandwich from a local café or bakery.
Regarding meals, those surveyed are willing to spend roughly £11 on a full English breakfast or fish and chips, but are content to pay over £15 for a Sunday roast.
More than half (54%) confessed they have reduced discretionary spending in recent years.
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Eating out (55%), new clothes (51%) and takeaways (49%) are amongst the most frequent areas where budgets have been trimmed. Despite this, 84% still believe it is important to support their local independent businesses, the survey carried out by OnePoll found.
Six in 10 (61%) want to do so because it supports the local economy, while 56% are eager to play their part in protecting jobs. Another 53% say they want to help prevent shops on their local high streets from closing.
- Pint of beer – £5.45
- Glass of wine – £6.23
- Takeaway coffee – £3.99
- Takeaway sandwich from café/bakery – £4.79
- Pastry from café/bakery – £3.73
- Full English breakfast – £11.01
- Portion of fish and chips – £10.97
- Sunday roast – £15.14
- Takeaway pizza – £12.47
- Burger and fries from a fast-food restaurant – £10.23
- Manicure – £31.37
- Pedicure – £31.48
- Spray tan – £30.34
- Haircut – £31.24