Inflation set to rise further

ended 17. May 2022

On Wednesday morning, we're getting the latest inflation data. It's expected to rise further from its current level of 7%. This story will be all over the news Wednesday and Thursday so we'd love some responses to the following questions:

  • How is inflation affecting you as an individual/household?
  • How is inflation affecting you as a small business/charity?
  • Do you feel the Government is doing enough to support people and small businesses/charities in the current financial crisis?
  • Is the current financial crisis having a worse effect on your business or charity than the pandemic?

Please keep your responses short and punchy. 2-3 sentences for each question will do. We'll do our best to get your views into the local and national media. Deadline is 9pm Tuesday but if you respond today or Monday we can put you forward for radio and TV opportunities.

17 responses from the Newspage community

Star Quote
"As a small business owner and single parent, inflation is putting an unbelievable pressure on me. I am the sole earner and the fact consumers have less disposable income to spend is devastating. With fuel and energy costs at record highs, my business is taking aa beating, especially as I work from home and provide mobile services. I've had to limit the amount of deliveries I provide due to mega-high fuel costs. This government is doing nowhere near enough to support people and small businesses during the current financial crisis. All they are doing is putting more pressure on businesses, many of which were only born during the pandemic. One hapless minister has suggested we take on more hours so that we can tackle the rising costs. Is she not aware that people are already exhausted and need help?"
Star Quote
"As a small, non-profit charity, we rely solely on fundraising and donations to thrive, provide support services, equipment and grants to families affected by Ectodermal Dysplasia in the UK. Soaring inflation is having a severe affect on everyone and people are trying their hardest to cut costs. Our supporters have always been there for us in our time of need, but we fear there is only so much families and individuals can take, and our biggest worry is to see a huge decline in donations and fundraising. I believe the current financial crisis will be having a worse effect on charities than the pandemic. More worryingly, a recession may be on the cards, as households are already cutting back on costs and outgoings. The cost of living is a big concern for everyone in the UK right now, which will cause a significant reduction in income from charitable giving."
Star Quote
"There has been a significant drop in our sales and bookings in the last few weeks. Having fought our way through the pandemic, this feels incredibly deflating. We are exhausted and our resources are low. The current financial climate is yet another thing small businesses are having to face, but this time there is no financial help from the Government. The current situation is potentially far more damaging longer term for our business. The government needs to do more to ease the pressures on household incomes and ensure the economy starts moving again otherwise many small businesses, like ours, won’t make it through another crisis."
Star Quote
"As a person living with a disability, inflation is causing me sleepless nights. And I know others in a similar situation to me are experiencing the same thing. Fuel bills rising are the worst, as I need to keep my house warm and the double whammy is that I am also dependent on my car. Almost everything costs more. I recycle paper and plastics and though these are inexpensive or free my other materials and postage and packing costs mean that I have had raise my prices just to cover these. The Government is displaying a complete lack of empathy and understanding of how the current financial crisis is affecting ordinary people. I don't have a mortgage but as rates rise more people risk losing their homes. My online sales are down as, like most online sellers, these went up during the pandemic. Overall it's hard to say as craft markets have opened up again bringing in sales. However buying jewellery is a treat rather than a necessity, the money I make also helps me to be able to treat my grandchildren and pay for Christmas."
Star Quote
"Rising inflation is affecting our lives daily. I find myself panicking about the price of food and worrying about future outgoings that are still months away, but which are likely to be costly. Our money isn't lasting nearly as long as it needs to. I've noticed a significant loss in customers over the past few months. Being self-employed and running a small business is scary, and I literally have to work from the moment I wake up, until I go to bed, in the hope that I can push sales that will provide for my family. I do not feel that the government is doing nearly enough for lower income homes, or for small businesses. The rich are getting richer and the poor, poorer. I don't see how working class people and small businesses will survive if things carry on the way that they're going. I'm genuinely worried for my children's futures. The current financial crisis is having a much worse effect on my business than the pandemic did. People were furloughed during the pandemic, so had no outgoing costs such as travel. Their income was their own to spend on frivolous items if they chose. Now people's incomes are being spent on necessities like food or gas/electric. Non-essentials are a no-no."
Star Quote
"We're a small family business, and our work is intertwined with our everyday lives. Over the past 10 years we've weathered many storms, but the current situation is the most worrying. By the end of this year our energy costs at home and in the business will be bigger than our mortgage and rent for our workshop. At the moment we're not sure where this additional money will come from. Our food bills have gone through the roof so we've started to use charities who distribute out of date food. We walk or cycle as a family, cutting down our use of our car and van. We've drastically reduced our energy consumption, but all these measures won't be enough to get us through. Our only option is to work 7 days a week, every week with no breaks. Holidays, gifts, treats for the kids have all been forgotten. It feels like we've gone backwards 50 years. Material costs are going through the roof and everyone is feeling the pinch. The current situation is worrying every small business owner I know, so much more than the pandemic did. It feels like after two years of desperately trying to survive, the little glimmer of hope we saw has been immediately snuffed out and many people are wondering if it's worth continuing. We've discussed shutting the business and getting whatever work we can to survive. We're also looking at claiming universal credit, something we'd never considered before. The government don't seem to be doing anything for small businesses, or the general population. It feels like we're being hung out to dry, while the profits of the energy companies and businesses like Tesco continue to skyrocket. Above all, there's a feeling of intense anger that we've been put in this situation. Brexit and Covid have taken small businesses to the very edge, and the current crisis will see many go over it."
The rate of inflation is far worse than what is being published; chances are it's already into double figures and rising. Or at least it feels like it is when you look at the cost to fill up your tank, and the utility bill lands on the doormat. The only actions the government has taken are making a bad situation worse by increasing the tax burden to its highest since the 1940s at a time when everything is rising. To top it off we've got idiotic MPs denigrating and patronising poor people saying you can cook meals for 30p a day when some people can't even afford to turn a radiator on. I heard a fantastic idea the other day; if MPs can cook meals for 30p then let's cap their expenses to that level, it only seems fair.
I have noticed that my current pay isn’t enough to cope at the moment, I’m Having to pay myself more, which means I have less money in the business. And I am a money saving educator, I know how to budget. There is only so far budgeting gets you. I am lucky I have the option to pay myself more. Others won’t be so lucky. We can’t control rising food and energy prices and inflation rates going up will just make this worse. Last week I asked Rishi Sunak if there would be any more funding available to support small business post pandemic, unsurprisingly he totally avoided the question. As a business who fell through the cracks a bit during covid in terms of support and feeling the knock on effect now the government need to be doing a lot more to support. And I mean micro businesses not just those who employ or have bricks and mortar businesses. Small businesses are the backbone of this countries economy and the government don’t seem to grasp this.
My energy bills are starting to really sting with the ferocity rising from wasp to giant hornet levels. Each visit to the forecourt is accompanied by wincing and teeth sucking as the digits whirl upwards. 2022 is proving a tougher marketplace than during the pandemic with a number of key factors affecting the UK holiday sector, the main one being the financial crisis resulting in less disposable income for holidays, but also the choice to travel abroad for those with money to spend. Interestingly the shape of bookings has also changed. There is a significant change in the booking-to-arrival period which means last minute bookings are growing. Secondly, we are seeing a steady but consistent growth in the demand for short breaks.
Every time I do my food shop these days, prices seem to have increased. Chicken in my local supermarket, £3.85 last week, £4.10 this. It's scary how fast prices are rising. The government's response to the cost of living crisis is tone deaf and woefully inadequate. It's almost like these privately educated, often wealthy politicians cannot comprehend the gravity of the situation affecting millions. Who knew!
"As a small manufacturing and ecommerce jewellery business, rising inflation is of great concern. My business is very much in the luxury spend category. With rising inflation teamed up with energy, food and fuel prices, this will inevitably put even more pressure on most people's purse strings in the UK. Purse strings will be tightened even further and understandably and the demand for non essential purchases like mine will decrease dramatically. I thought that the pandemic was challenging for businesses but with what is currently happening with the economy is far worse. It is certainly making myself and other SME business owners fearful of what lies ahead of us for the rest of 2022. Business confidence among small businesses is certainly sinking to an all-time low! The government is not doing nearly enough. They needs to act now to implement an emergency plan of action to support the economy though this unprecedented economic time. They need to consider reducing VAT down to 5% for the retail sector like they did during the pandemic for the hospitality industry "
The current effect of the inflation disaster reminds me of March 2020 when the pandemic was just starting. Everyone is concerned yet for many, few of the effects have yet to be truly felt. The scale of the inflation problem and the impact it will have on our everyday lives is deeply concerning, however the initial effects of fuel increases, energy price increases and food and drink price rises are only just starting to feed through to peoples daily budgets. Many have started to feel the pinch, however months or years of the inflationdemic will certainly not lead to anyone clapping on their doorsteps.
Charities that rely on donations will be hit the hardest. I provide volunteer services to The Bradford Soup Run, who have been feeding and clothing the homeless since 1984. With food and energy prices increasing so rapidly it's inevitable that the cost of buying and cooking a meal will increase. Equally, it's expected that more people will suffer hardship and visit charities for support, meaning the demand for charities will increase.
"With inflation on the up and the cost of living becoming more expensive, we're talking to more and more of our clients about fixing their mortgage for longer than 2-3 years. We may not know by how much fuel, energy prices, TV or phones will increase in the short- to medium-term, but what the homeowner can obtain is peace of mind in knowing what their finance costs on their borrowing will be for the next 5-10 years. Purse strings are already being tightened due to rising costs and brokers should be pro-actively contacting their existing clients up to six months before their current loan expires to review their mortgage. We have a duty of care to ensure our clients aren't paying higher than they should be on their repayments and, as a lot of lenders have a six month validity on their mortgage offers, brokers should be engaging as early as possible. We've seen a surge in remortgages with capital raising to clear unsecured debt. However, we are always careful to explain to clients the interest they will pay on the unsecured debt consolidated into the mortgage may be higher than if they just paid it in isolation. The appeal of a reduction in outgoings is seen as more favourable and helps to mitigate the other rising costs they have had."
It will be the same old story - prices in affluent "desirable" areas will hold value or continue to rise and the rest of the market will see a correction brought about by rising interest rates, inflation and potentially an increase of supply due to people not being able to pay their mortgages. All members of the Cabinet should be forced to live on 2 slices of Mighty White and a Chicken and Mushroom flavour pot noodle a day for 2 weeks to give them an insight in to how us plebs live.
Small family businesses will suffer most from these rises and this in turn will impact on communities, who could well see businesses unable to continue. However aligned to the rise in costs, we expect to see a continued rise of local shopping as more people realise that where they are spending their money will help their own communities to survive the current crisis. I hope that the Government will step in to help the thousands of family businesses that will be struggling to stay afloat as both households as well as local shops in the coming months.
"The current financial crisis is having a far wider impact on business than COVID-19 did, and it feels like a kick in the teeth after two years of the pandemic. During the pandemic, businesses in our local community adopted a collaborative approach to help each other get through the crisis. Although the outlook was grim, the small business community pulled together to help each other through. Cut to the current situation and costs have been rising at an uncontrollable rate across the board in 2022, and so many small businesses are now in a race for survival. Each new supply chain price rise is painful. The inflationary price rises we put through earlier in the year to help us maintain our income in real terms have been swallowed up and now seem insignificant. This can’t continue. If we all keep putting up our prices to cope with increased costs, it will keep us on an inflationary roundabout. The government needs to step in the break this cycle."