02/04/2026
This is a price increase notification from one of our suppliers. Notably, several of the reasons cited for
the increase stand out, none of which are attributed to the current issues in the Gulf.
A number of factors have contributed to this position. These include increasing compliance and
legislative costs (Government) , Extended Producer Responsibility (EPR) (Government). In addition,
employment related costs have risen through higher National Insurance contributions(Government),
increases to the National Minimum Wage (Government, 4.1%, public sector been denied this, 3.3%
increase by the Government themselves), and wider employment law changes (Government). We
have also seen continued pressure on operating costs, including energy, fuel (Government are
increasing duty by 5p per lt, they already get 76.32% of the pump price), insurance, business rates
(Government), freight, and inflation. We are also facing increases on product ranges where raw
material prices have increased.
The current government’s manifesto, led by Keir Starmer and the Labour Party, committed to
supporting economic regeneration by creating greater stability for businesses. This included aims to:
Encourage investment
Reduce the burden on physical premises
Provide stability and predictability in tax and policy
Deliver structural reforms (business rates)
Use public investment to unlock private investment
Establish a long-term industrial strategy
In short, the goal was to make the UK a more stable and attractive place to do business.
For many, this is the most challenging trading environment they have experienced in years, and there
is a growing concern about how long this level of pressure can realistically be sustained without
impacting investment, growth, and ultimately the viability of businesses themselves.
what are your thoughts?
