Half of SMEs 'to increase prices' as result of fall in Sterling, BCC suggests

A survey carried out by the British Chambers of Commerce has revealed that 54% of SMEs expect to have to raise the prices of products and services in the coming 12 months.

07 Feb 2017

A survey carried out by the British Chambers of Commerce (BCC) has revealed that 54% of small and medium-sized enterprises (SMEs) expect to have to raise the prices of their products and services in the coming 12 months due to the depreciation of Sterling.

Since the UK’s vote to leave the EU last June, Sterling has fallen by around 16% in comparison to the dollar.

44% of businesses reported that the devaluation of Sterling is having a negative impact on their domestic sales margins. Meanwhile, 25% of firms revealed a positive impact upon export margins, while 22% reported a negative impact.

The survey, which is based on responses from 1,500 UK businesses, also found that 45% of firms currently do not manage currency risk, with 46% revealing that they don’t expect to manage this in the next six months.

Adam Marshall, Director General of the BCC, commented: ‘The depreciation of Sterling in recent months has been the main tangible impact that firms have had to grapple with since the EU referendum vote.

‘Our research shows that the falling pound has been a double-edged sword for many UK businesses. Nearly as many exporters say the low pound is damaging them as benefiting them.

‘For firms that import, it’s now more expensive, and companies may find themselves locked into contracts with suppliers and unable to be responsive to currency fluctuations.’

Try a site search

About us

Ling Phipp was founded in 1974 and nowadays has two partners, six managers plus trainees and support staff.

We serve clients in the East Midlands and all over the UK. Our out-of-town location, with easy parking, close to the M1 junction 25 (Nottingham/Derby - A52), is very convenient.

Company details

0115 949 6838

Ling Phipp, Cliffe Hill House, 22-26 Nottingham Road, Stapleford, Nottingham NG9 8AA


© 2018 Ling Phipp. All rights reserved. We use cookies on this website, you can find more information about cookies here.

Registered to carry on audit work in the UK and Ireland and regulated for a range of investment business activities by the Institute of Chartered Accountants in England and Wales. Details about our audit registration can be viewed at www.auditregister.org.uk, under reference number 6424855. This is the firm number provided by the Institute of Chartered Accountants in England and Wales.