More than half of small- and medium-sized businesses said they expect to increase prices of their products and services as a result of the weak pound, a new survey has found.
The research from the British Chambers of Commerce’s (BCC) latest International Trade Survey showed nearly half (44%) of all 1,500 business surveyed said the recent fall in the value of sterling is having a negative impact on their domestic sales margins.
A quarter of businesses reported a positive impact on export margins, while 22% said it was having a negative impact.
Just less than half of businesses (45%) do not currently manage currency risk, found the survey.
BCC director general Dr Adam Marshall urged the government to do everything in its power to help businesses keep costs down and stay competitive, as currency fluctuations are likely to continue as Brexit unfolds.
“Alleviating many of the up-front costs facing companies should be a priority for the Budget in March – starting with the sledgehammer of business rates,” he said.