Cebr and Make It Cheaper have modeled an inflation tracker for small business overheads – the Business Cost Index. The Index shows a 22.8% rise in small business costs over the past 5 years, compared to the ONS Consumer Prices Index increasing by 19.4% over the same period. In terms of individual overheads, the biggest risers predicted by the Index are transport costs, which are expected to rise 20.5%, energy bills, forecast to grow 8.5% and insurance premiums, set to rise 7.1% in 2011.
Jonathan Elliott, managing director of Make It Cheaper comments: “Government policy needs to curb business cost inflation this year. However not all threats identified by entrepreneurs are outside of their control. By shopping around, comparing prices, regularly switching suppliers and taking care not to get caught in contract renewal traps, companies can go a long way to bringing their overheads, such as energy, under control.”
For further information, and advice and tools for small businesses to help manage overheads click here
