Two in three small businesses have raised their prices at least three times in the past five years, according to new data — and a quarter plan to push them up again before the end of summer. The findings come as separate figures from the Office for National Statistics show the labour market is cooling fast: vacancies tumbled by 19,000 to 707,000 in the three months to May, the lowest level in five years.
The relentless price rises reflect sustained cost pressures on Britain’s small firms, who have passed on higher expenses to customers repeatedly. The ONS data suggests the economy is losing momentum, with fewer employers hiring. The decline in vacancies by 19,000 in the quarter to May marks a continued slowdown after a period of post-pandemic recovery.
“Two-thirds of small firms raised prices three times or more; vacancies fell 19,000 to 707,000, a five-year low”
For small businesses, the challenge is acute. Two-thirds have already increased prices three or more times over five years, and the next round of increases is imminent for many. This cycle of repeated hikes risks squeezing household budgets further as consumers face higher costs for everyday goods and services.
The ONS figures show that the total number of job vacancies stood at 707,000 in the three months to May, down from 726,000 in the previous quarter. This is the lowest since 2021, indicating that employers are becoming more cautious about hiring amid economic uncertainty.
Together, the data paints a picture of an economy where small firms are struggling with rising costs and the labour market is losing steam. The planned price increases from a quarter of small businesses before the end of summer could add to inflation pressures, even as demand for workers softens.