UK Inflation Rises

UK Inflation Increases

I’m sure we’re all aware that UK inflation rates are on the increase. At the time of writing, the rate was 4.2%, well above the 2% rate set by the UK Government.

There are a number of factors that have contributed to this including:

• Shortages of many goods, including building materials and computer chips.
• Government support to businesses during the pandemic (e.g. reduced VAT for hospitality) has ended.
• Businesses are struggling to recruit lorry drivers and hospitality staff.
• Shortage of and demand for oil and gas are pushing up energy prices world wide.

As a result of this, and other factors, we are all seeing price increases in, for example, home renovation projects, taxi fares, some foods etc.

The most significant increase that we, as your factors, are expecting to see is in Utility Bills. We work closely with a utilities broker to ensure that we capture the best deals available for our customers but we have to be conscious of the fact that energy costs are increasing and, although we and our brokers will continue to do everything we can to mitigate the effect of utility increases, we cannot guarantee that our customers will not be immune to increasing energy costs. Of course, we do not take any mark up or commission on any of our invoices so we will not benefit in any way from increases.

In addition to utilities, we are also finding that some materials our contractors require are in short supply. This has not been a significant issue, in most cases, to date but we are working closely with our suppliers to ensure that, where possible, they are able to secure the right materials at the right price.

As always, we will endeavour to secure the best prices for our customers during these difficult trading conditions. As we have said many times, we do not benefit in any way from supplier increases – the price we pay is the price you pay – so we are always looking for the best deals.

James Gibb doing it the right way