One in Four UK Firms Weighing Price Rises Over Energy Costs, ONS Survey Finds

The latest Business Insights and Conditions Survey shows 24 per cent of trading businesses are considering raising prices because of energy costs — up 10 percentage points on August 2025 — while economic uncertainty remains the top challenge for firms in July 2026.

Nearly a quarter of all trading businesses across the UK were considering raising their prices because of energy costs in mid-2026, the figures show — a 10 percentage point jump compared with August 2025. At the same time, 59 per cent of businesses expressed some degree of concern about energy prices in early July 2026, though that was 5 percentage points lower than in late June 2026, suggesting a slight easing rather than a reversal.

The data comes from Wave 160 of the Office for National Statistics Business Insights and Conditions Survey, covering 6 to 19 July 2026, which the ONS posted on social media this week.

Economic uncertainty was the most commonly reported challenge affecting turnover among trading businesses in July 2026, cited by 32 per cent of respondents — broadly stable compared with June 2026. But for larger firms, the picture shifts: among businesses with 10 or more employees, the cost of labour topped the list at 36 per cent, also broadly stable month-on-month.

Turnover expectations for August 2026 are mixed. Only 13 per cent of trading businesses expect their turnover to increase next month, while 18 per cent expect a decrease — up 4 percentage points from expectations for July 2026, though broadly in line with August 2025.

Input prices showed some relief. Thirty per cent of trading businesses reported an increase in the prices of goods and services they bought in June 2026, down 7 percentage points from May 2026. Yet that figure remains 5 percentage points above June 2025, following what ONS describes as a typical seasonal pattern of higher spring price pressures.

For Kent households and businesses, the national picture carries direct weight. Kent’s economy includes significant transport, manufacturing, retail, agriculture and tourism sectors — all exposed to fuel and energy costs. Firms trading through the Port of Dover or Channel Tunnel face the additional supply-chain risks flagged in earlier 2026 BICS waves, where 37 per cent of larger businesses reported concern about international conflict affecting supply chains over the next year. Any price rises that UK businesses pass on to customers will feed into the cost of goods and services locally.

House of Commons Library analysis of BICS data puts the broader context plainly: around 23 per cent of businesses reported their overall performance had decreased over the last year, against just 15 per cent reporting improvement, with 50 per cent reporting no change. So while some firms are growing — 17 per cent of trading businesses reported increased turnover in June 2026 compared with May 2026, rising to 28 per cent among larger businesses — the majority are holding steady rather than expanding.

ONS classifies BICS as official statistics in development, meaning the series is still being refined. The survey does not publish county-level figures, so Kent-specific breakdowns are not available from this data.